XRP Rejected at $2.00 Again: 186% Volume Spike Signals Seller Control

XRP is once again stuck trying to clear that pesky $2.00 hurdle, a barrier its price action has repeatedly failed to breach over recent...

Quick overview

  • XRP is struggling to break the $2.00 resistance level despite favorable conditions from recent US interest rate cuts.
  • The market shows high selling pressure, with trading volume significantly above average during rejection points at $2.00.
  • XRP's technical indicators suggest a bearish outlook, with the price remaining below key moving averages and a descending trend line.
  • Despite positive long-term fundamentals, XRP's price action reflects indecision and a lack of buyer confidence.

XRP is once again stuck trying to clear that pesky $2.00 hurdle, a barrier its price action has repeatedly failed to breach over recent sessions, despite the latest weakening in US monetary policy. That came about when the US Federal Reserve lowered interest rates by a quarter point to a range of 3.5% to 3.75%.

A cut in interest rates is a boon for XRP, as it usually lifts the prices of high-risk assets. But XRP – well, it hasn’t been following that script this time round. Instead, its price is painting a picture of a market in limbo, with traders on the fence and reluctant to get behind any upward move without clear validation. It’s a market caught between good fundamentals and weak short-term momentum.

Institutional Progress Hits a Wall – Technical Reality

At first glance, XRP’s long-term narrative is actually getting stronger. XRP-based spot ETFs have been attracting investors steadily. Meanwhile, the XRP ecosystem has been expanding with new services & integrations popping up all over the place – from cross-chain functionality to DeFi & custody services. That all sounds like good news for XRP’s role in institutional and payment-type business cases.

But yet again, XRP’s price hasn’t acted as if it knows all that good news. Every time the price comes close to that $2.00 barrier, it gets knocked back, and it’s the turnover at that point that is showing high levels of selling activity. It’s like the buyers just aren’t confident enough to go through with it.

Some of the key things traders are watching right now are

  • The repeated failures at $2.00, which is just confirmation that there’s a ton of selling supply lining up overhead to take on any attempts to get past
  • trading volume has been running around 186% above average at these rejection points – which is just reinforcing the view that this is being driven by selling pressure rather than buying pressure
  • The RSI can’t seem to get any traction; it’s just going from one extreme to the other – it’s like the market doesn’t have any conviction.

Chart Structure is Favouring Caution

On the 4-hour chart, XRP is trading at about $1.998, clinging to short-term support after a fairly extended pullback. The recent candles are really small, with lots of wicks at the edges – that’s a clear sign the market is just being indecisive, not anything better.

The overall structure is still bearish. XRP is stuck below its 50-day moving average at $2.05 and the 100-day EMA at $2.16 which is also sloping lower. There’s a clear descending trend line from a while back still capping all the price bounces – and that trend line happens to align with an old breakdown zone between $2.05 & $2.10. Below $1.95 there are realistically two clear levels of support:

  • Initial support lies at $1.95
  • Below that, $1.89 and $1.82 come into view

The RSI is hovering around 40, so we’re not oversold – but that also makes it pretty likely that we’ll see more of the same old drivel of a sideways drift or gradual drift lower unless someone manages to actually get the price back up to $2.05 with some absolute conviction. Until then, XRP’s outlook remains neutral to bearish, even as its long-term fundamentals continue to tick up.

ABOUT THE AUTHOR See More
Arslan Butt
Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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