On the morning of October 14, XRP experienced a decline of around 2-3%, dropping below the crucial $2.60 barrier. This downturn coincided with a significant transfer of XRP valued at $63 million to Binance, heightening the selling pressure across broader altcoin markets. Despite attempts to defend the $2.55-$2.56 range throughout the day, profit-taking concentrated in the $2.65-$2.66 range capped any upward movements. Notably, jumps in volume, recorded on an hourly basis, indicated sustained buying from the bottom, hinting at a potential recovery in the technical outlook. A sustained reclaim above $2.60 could set the stage for another attempt towards the $2.70 region.
Key Levels to Watch in XRP
Recent blockchain data revealed that the major transfer reinforced a short-term supply increase in XRP, especially near the $2.66 mark where a robust selling wall formed. In the same period, a decline in market depth saw large orders pushing prices below $2.57, eventually stabilizing around a $2.55-$2.56 equilibrium. This data suggests that during periods when buying activity weakened, selling pressure accelerated.
Throughout the day, the $2.55 region remained a crucial support zone for XRP, while the $2.65-$2.66 range consistently acted as the peak area. Repeated pullbacks from this resistance have maintained the short-term downtrend. Market participants anticipate a potential retracement to the $2.50-$2.52 range if the support fails, while a sustained move above $2.60 could open the door for a $2.70 challenge.
What Lies Ahead for XRP?
Intraday trading volumes for XRP have prominently surpassed average levels at deeper regions, confirming institutional interest in acquiring during perceived weaknesses. Despite this, lower peaks suggest that selling pressure remains dominant. The cautious sentiment persists as long as the short-term trend remains below the 200-hour moving average.
Should the altcoin maintain a stable position above $2.60, there’s a chance for momentum to regain its balance. Conversely, a close below support levels could trigger further liquidation of leveraged positions, exacerbating the selling wave.