Ripple Lags Market Rally but Volume Tells a Different Story

XRP posts modest gains but trails the broader crypto rally as volume spikes nearly 10% above the weekly average — a sign of institutional positioning at key technical levels ahead of potential breakout catalysts.

News Background

  • XRP gained 1.33% to $2.41 during Tuesday’s session, underperforming the CD5 index by 0.50% despite a clear uptick in trading activity.
  • The token attracted renewed institutional interest, with total 24-hour volume jumping 9.55% above its seven-day average. Traders said the muted price action alongside higher turnover suggests accumulation rather than distribution as institutions reposition around $2.40 psychological support.
  • The broader crypto market traded firmer, led by bitcoin’s advance and gold’s retreat as investors rotated into digital assets.
  • XRP’s relative underperformance may reflect sector rotation rather than weakening fundamentals — particularly as Ripple’s $1 billion fundraising and multiple pending ETF applications continue to underpin long-term sentiment.

Price Action Summary

  • XRP traded within a $0.17 intraday range between $2.37 and $2.54, peaking early at $2.54 before retreating into consolidation.
  • The session’s 155.8 million token turnover — 121% above the 24-hour average — underscored heavy participation during the breakout attempt, though the rally faltered as sellers defended resistance at $2.54.
  • In the final 60-minute window, XRP stabilized around $2.40–$2.41, with volume easing to 3.6 million.
  • The pattern of repeated failed rallies above $2.45 and higher-than-average activity below resistance aligns with typical institutional accumulation behavior.

Technical Analysis

  • XRP’s structure shows a descending triangle forming between $2.54 resistance and $2.40 support, highlighting a tightening range as volatility compresses.
  • Successive lower highs since the early-session peak confirm short-term bearish bias, while persistent buying interest near $2.40 indicates a strong defense zone.
  • Momentum indicators remain neutral, leaving directional bias uncertain. A break below $2.40 could open a pullback toward $2.30, while a confirmed breakout above $2.45–$2.54 would invalidate the bearish setup and signal renewed bullish control.
  • Elevated relative volume suggests professional flows continue to dominate the tape.

What Traders Are Watching

  • Traders are monitoring whether institutional flows can sustain above the 9.5% volume surge threshold.
  • Attention centers on the $2.40 support band for confirmation of accumulation strength, and on the $2.54 resistance zone for a possible breakout trigger.
  • Macro catalysts — including ETF decisions and shifting risk sentiment as gold declines — may determine whether XRP remains range-bound or resumes its prior uptrend.



Source link

Shaurya Malwa

https://www.coindesk.com/markets/2025/10/22/xrp-lags-market-rally-but-volume-tells-a-different-story

2025-10-22 14:18:00

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