XRP Trades in Narrow Range Amid Institutional Selling and Leverage Risks
XRP is trading within a narrow range of $2.78–$2.85, indicating institutional selling pressure and increased leverage risks. Exchange reserves have reached a nine-month high, with 440 million tokens distributed over the last 30 days. Futures open interest is nearing $9 billion.
Price Action Summary
- XRP fluctuated between $2.79 and $2.85, creating a 2% trading corridor.
- Resistance at $2.85 remains strong, with rejections noted around noon.
- Support at $2.78 is consistently defended on high volume.
- Late session drifted from $2.83 to $2.82, indicating continued distribution.
- Decreased volume towards the end suggests selling exhaustion near $2.82.
Technical Analysis
The $2.85 level has become a significant resistance point, while $2.78 serves as a crucial support level. Increased exchange inflows and large holder distributions present downside risks, especially as leverage builds with futures open interest approaching $9 billion. However, the defense of $2.78 suggests potential institutional buying at this level. A break above $2.85 could lead to a move towards $2.90–$3.00, whereas falling below $2.78 could accelerate the decline towards $2.72.
What Traders Are Watching?
- If $2.78 continues to hold as a structural support level.
- Potential volatility from leverage unwinding during a $3.00 retest attempt.
- The balance between whale distribution and signs of dip buying.
- Impact of ETF and Fed developments on breaking out of the $2.78–$2.85 range.