XRP, the cryptocurrency associated with Ripple, has shown a strong 20% rebound in the past 24 hours, reaching $2.57 despite facing significant selling pressure. While this recovery is notable, XRP continues to battle volatility, driven by ongoing concerns surrounding market conditions and whale activity. In particular, the recent market turbulence—triggered by trade tariff uncertainties and large-scale sell-offs by institutional players—has intensified the challenges for XRP.
At the core of XRP’s price movement is the $2.62 resistance level. Although the coin’s price has bounced back from recent lows, it remains stuck at this critical resistance point. If XRP manages to break through this level, the next target becomes the $3.03 mark. However, given the current market conditions and significant whale sell-offs, achieving this target may take time.
Whale activity has played a crucial role in XRP’s price fluctuations over the past few weeks. A major factor behind the market’s instability has been the large-scale sell-offs, particularly by institutional investors. On a single day, more than 130 million XRP were sold, overwhelming the market with tokens and exacerbating the downward pressure. This sudden flood of XRP led to a chain reaction, where smaller retail investors also opted to sell off their holdings, further pushing the price lower.
The sell-offs from these whales have created extreme volatility, with XRP experiencing sharp declines followed by sudden surges. The absence of sustained buying activity on decentralized and centralized exchanges has contributed to the prevailing bearish market sentiment.
Beyond whale activity, market-wide uncertainty stemming from global trade policies has also played a significant role in XRP’s performance. The trade tariff situation between the U.S., Canada, and Mexico, along with the ongoing U.S.-China trade war, has created an environment of heightened caution in the broader financial markets.
While some tariff tensions between the U.S. and Canada were temporarily alleviated, the continuation of tariffs on China has kept the markets on edge. This trade uncertainty has spilled over into the cryptocurrency space, negatively impacting XRP’s attempt to regain momentum. Despite the turmoil, however, XRP has managed to demonstrate resilience, bouncing back from recent lows.
XRP’s technical analysis shows that the coin is still struggling to break past the $2.62 resistance level. The price is currently below the middle Bollinger Band at $3.03, signaling ongoing bearish momentum. Should XRP fail to overcome the $2.62 resistance, it could face additional downward pressure, with the next critical support level being $2.20. A decline below this support could send XRP toward the psychological $2.00 mark.
The Awesome Oscillator (AO), a momentum indicator, has also turned negative, which is another signal that bullish momentum is weakening. Furthermore, the Cumulative Volume Delta (CVD), which tracks buying and selling volume, stands at -1.76 million, reflecting ongoing selling pressure in the market.
Bitcoin, the leader in the cryptocurrency space, continues to have a significant impact on XRP’s price action. Despite recent positive sentiment surrounding Bitcoin, its rejection at the $99,500 mark has resulted in a more cautious outlook for the broader crypto market. Bitcoin’s failure to break through key resistance levels has made investors hesitant, reflecting a broader sense of uncertainty that is also weighing on XRP.
For XRP to target $3.03, it must first overcome the immediate resistance at $2.62. The market’s volatility, driven by whale sell-offs and ongoing trade uncertainties, makes it uncertain whether XRP can maintain its bullish momentum. However, if XRP can sustain its recovery, break through $2.62, and hold above key support levels, it could pave the way for further gains. Investors should keep a close watch on these technical levels and broader market conditions to gauge whether XRP can continue its upward trajectory.
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