XRP plunged sharply Wednesday as sellers overran key support zones, triggering widespread liquidation across exchanges while institutional flows drove the heaviest trading activity in over a week.

News Background

XRP fell 7.5% over 24 hours, sliding from $2.40 to $2.22 in a broad-based selloff that accelerated after the token breached the $2.28 technical support. The breakdown unfolded alongside a surge in trading volume that reached 137.4 million, representing an 84% spike above the daily average.

The selling wave peaked at 15:00 GMT, when cascading stop orders amplified downward pressure, forcing XRP through multiple short-term support levels. The decline spanned an $0.21 range, underscoring heightened volatility as traders unwound leveraged positions.

By late session, trading activity dropped sharply to 7.0 million as selling momentum cooled. The sharp contraction in volume reflected exhaustion among short-term participants following one of the steepest intraday declines this month.

Price Action Summary

Price briefly stabilized near $2.20 before rebounding modestly to $2.224, forming a series of higher lows through 02:12 GMT as short-term buyers entered at oversold levels. The move reflected tactical accumulation rather than directional conviction, as the broader structure remained bearish.

Despite the bounce, XRP failed to reclaim the $2.28 breakdown level, confirming the shift in market control to sellers. Consolidation around $2.218 dominated the final trading hours, highlighting indecision amid depleted liquidity. The pattern mirrors prior breakdown phases where low-volume stabilization precedes either short-lived recoveries or further declines.

Technical Analysis

XRP’s daily structure now confirms a firm bearish bias following multiple failed retests of the $2.40 resistance zone. The decisive breakdown below $2.28 marked the completion of a descending channel formation visible on 4-hour charts, a pattern typically associated with continuation setups in corrective markets.

Momentum indicators turned sharply negative as RSI retraced from neutral levels into mild oversold territory, while MACD readings crossed into bearish alignment for the first time in two weeks. These signals support the near-term continuation thesis unless XRP reclaims the $2.28-$2.30 pivot range.

Volume analytics strengthen the bearish view, with the 84% surge during the breakdown contrasting sharply with declining participation during the rebound — a classic signature of institutional distribution rather than retail-driven volatility.

What Traders Should Know

Traders are focused on whether $2.20 can hold as interim support amid continued selling pressure. A decisive break below this level would expose $2.10–$2.00, where prior consolidation zones provide limited technical cushioning.

Conversely, recovery efforts require a firm close above $2.28 to neutralize the current downtrend and open a path toward $2.35–$2.40 resistance. Short-term market sentiment remains fragile as derivatives data show rising short exposure and reduced spot demand.