Bitcoin Decline Pushes XRP and Other Altcoins Into Oversold Territory

XRP Oversold but Needs $1.96 Break to Reverse Downtrend

Market Context
XRP came under heavy pressure after whale wallets dumped nearly 200 million tokens (~$400M) over 48 hours, creating significant supply stress. The broader market’s risk-off sentiment intensified as Bitcoin fell below $90,000, dragging altcoins into heightened volatility.

Despite the selling, institutional interest remains robust. Bitwise’s new XRP ETF recorded $25.7M in first-day volume and has $107.6M in AUM, highlighting continued institutional demand. Still, sentiment across major cryptocurrencies remains fragile, with total market capitalization pressured by ongoing outflows.

Price Action Overview

XRP dropped from $1.96 to $1.91, marking its lowest close in three sessions.
Trading volume surged 67% above average to 182.1M, reflecting active institutional selling.
A descending channel dominated most of the session, with 5.1% intraday volatility.
A capitulation bottom formed at $1.895, followed by a 0.5% late-session bounce.
Final-hour volume spiked to 2.76M, breaking the trend of declining participation and suggesting early accumulation.

Technical Analysis
The session reflects a distribution-driven decline with early reversal signs. Whale selling pressured XRP through the $1.96 resistance, pushing the token into a persistent descending channel.

Support at $1.90–$1.91 proved pivotal. Institutional buying after the capitulation at $1.895 sparked a modest intraday reversal. Momentum indicators—including RSI and short-term stochastic—signaled deep oversold conditions, showing the first bullish divergence since last week’s breakdown.

The late-session 2.76M-volume spike suggests early accumulation, but the overall structure remains fragile. XRP must break $1.96 to exit the descending channel and attempt a trend reversal. Failure to defend $1.90 could lead to a rapid move toward $1.82, then $1.73.

Key Levels and Takeaways

$1.90: Crucial support. A close below opens the door to October’s deep liquidity zones.
$1.96: Key resistance. Clearing this level is essential to restore short-term bullish momentum.
ETF flows: Bitwise’s AUM growth could drive upside if volume picks up.
Momentum: Oversold signals and divergences favor near-term bounce attempts, but whale distribution remains a key risk.
Market sentiment: Elevated fear suggests XRP will continue to react sharply to Bitcoin volatility.