Faces Bearish Cross Risk, Sinks 5%

The Ripple-linked token broke through multiple technical floors while whale transfers injected fresh uncertainty into an already fragile market structure.

News Background

• XRP plunged 5.1% to $2.41 during Tuesday’s session, sliding from $2.54 as selling pressure overwhelmed key support zones.
• The move unfolded without direct macro catalysts, instead reflecting a technical-driven selloff amplified by volume expansion and large-scale token movements across major wallets.
• Tennessee-based Canary filed an 8-A form on Monday, a U.S. Securities and Exchange requirement for companies registering securities.
• The Canary XRP ETF would track the spot price of the fourth largest digital asset by market capitalization.
• Whale activity compounded volatility, with over $1 billion in XRP moved between Ripple-linked custodial addresses.
• While on-chain data suggested the transfers were internal rather than exchange-related, the timing created renewed uncertainty during a period of heightened technical fragility.

Price Action Summary

• The decline stabilized near $2.39–$2.41 as short-term buyers stepped in to absorb selling pressure. The token rebounded modestly from $2.408 lows, climbing to $2.418 during the overnight session.
• Hourly data showed a 4.5% bounce off session bottoms, with volume topping 1.1 million at 02:01 UTC, suggesting opportunistic accumulation at discounted levels.
• Despite the brief recovery, XRP remains technically constrained. Consecutive lower highs from the $2.54 peak reflect persistent distribution patterns. Failure to regain $2.47 or reclaim broken support at $2.43 leaves the broader setup vulnerable to further downside tests.

Technical Analysis

• The broader structure tilts bearish as momentum indicators flag deterioration across mid-term timeframes.
• The developing Death Cross pattern—where the 50-day moving average converges below the 200-day—adds to short-term caution.
• RSI readings hover near oversold territory, hinting at possible near-term relief, but trend confirmation requires stronger participation from institutional buyers.
• The 38.2% Fibonacci retracement near $2.42 defines immediate resistance, while any recovery above $2.47 could reestablish short-term balance. Beneath $2.35, however, the risk of an extended decline toward the $2.20–$2.25 zone increases sharply.

What Traders Should Know

• XRP’s ability to defend the $2.39–$2.41 band will determine whether the move evolves into a technical rebound or extends into deeper correction territory.
• The lack of panic volume on the final leg lower suggests controlled profit-taking rather than capitulation, though whale activity remains a wild card for sentiment.
• Institutional traders continue to monitor Ripple-related on-chain flows as potential leading indicators for liquidity-driven shifts.
• With broader crypto sentiment mixed, the next decisive move hinges on whether XRP can reclaim $2.47—its near-term pivot point separating stabilization from sustained downside.