XRP Tests $2.90 Support as $500 Million in Bullish Crypto Bets Get Liquidated

XRP fell nearly 4% on Tuesday, sliding from the $2.99 resistance zone to stabilize around $2.878 after a surge in institutional selling. Trading volume spiked to nearly seven times the daily average, confirming significant liquidation flows. Market participants are now watching whether the $2.85–$2.87 support band can hold as Ripple approaches its U.S. banking charter review.

Market Background
Ripple’s bid for a national banking charter has drawn regulatory attention, with the Oct. 7 OCC review deadline serving as a key event. Broader macro headwinds—including trade tensions and diverging central bank policies—continue to strain liquidity, affecting enterprise-focused tokens like XRP.

On-chain data shows Binance custody reserves rose roughly 19% over the past week, reflecting distribution pressure despite ongoing whale accumulation.

Price Action Summary

Resistance: $2.993 confirmed after multiple rejections.
Breakdown: Heavy selling occurred between 13:00–15:00 UTC, pushing XRP to $2.878 on volumes of 586.9M.
Range: The 24-hour trading span of $0.144 (4.8%) indicates fragile order books.
Recovery: A late-session rebound lifted XRP to $2.881, suggesting short-term stabilization.

Technical Snapshot

Support: $2.85–$2.87 is critical; a breach could open the door to $2.70.
Trend: Lower highs under $3.00 highlight a bearish bias.
Volume: Liquidation flows at 7x average underline institutional exit pressure.
Momentum: Late-session recovery points to temporary stability, but the broader setup remains fragile.

Key Factors for Traders