XRP Faces Short-Term Caution Amid Key Support Test
XRP is currently trading at $2.43, down 5% this week and 18% this month. The token has retreated about 33% from its July peak of $3.85. Despite this, there’s hope for a rebound if it holds above $2.40.
Chris Larsen, Ripple’s co-founder, recently sold 50 million XRP worth $120 million. This sale raised concerns about insider selling, especially as XRP neared a crucial support level. However, the market absorbed the selling pressure without panic.
On-chain data shows that while the sale sparked short-term pessimism, it hasn’t led too widespread panic. Historically, such sentiment spikes have been followed by short recoveries.
- XRP’s 7-day range is between $2.21 and $2.56, showing tight consolidation.
- 24-hour spot trading volume reached $4.12 billion, up 19.9% daily.
- Derivatives activity increased, with open interest rising 2.86%.
Upcoming spot XRP ETF rulings could provide a counterbalance. Analysts predict a 95% approval rate, potentially unlocking $5-8 billion in inflows.Ecosystem developments, like Evernorth’s $1 billion treasury raise and Ripple’s RLUSD stablecoin nearing $1 billion, also support XRP.
Technically, XRP is testing short-term support. If it holds above $2.40, it could stabilize and target $2.60-$2.70. A break below $2.10 might expose the next support level near $1.80.
