XRP Drops Sharply Despite ETF Strength, Technicals Flash Bearish Signal

XRP Drops 5% as Whale Transfers and Technical Weakness Pressure Market

XRP extended its decline Tuesday, slipping 5.1% to $2.41 as heavy whale movements and a breach of key technical levels fueled renewed selling across the market.

Market Drivers

The Ripple-linked token fell from $2.54 amid rising volume and growing technical fragility, with no major macro triggers behind the move. Blockchain data revealed over $1 billion in XRP transfers between Ripple-associated custodial addresses—likely internal, but enough to unsettle traders already wary of market structure instability.

Adding to the spotlight, Canary Capital filed an 8-A form with the U.S. SEC, advancing plans for a Canary XRP ETF that would track spot XRP. The filing underscored institutional interest in the token even as its price action weakened.

Price Action and Technical Outlook

The selloff found temporary footing near $2.39–$2.41, where short-term buyers absorbed selling pressure. Volume surged 4.5% above session averages, hinting at opportunistic accumulation, but momentum remains fragile.

A series of lower highs since the $2.54 peak signals ongoing distribution. Unless XRP can reclaim $2.43–$2.47, the path of least resistance remains lower, with key support sitting at $2.35 and deeper downside potential toward $2.20–$2.25.

Technically, the setup remains bearish. A developing Death Cross — where the 50-day moving average dips below the 200-day — confirms weakening trend structure. RSI readings hover near oversold levels, suggesting a possible near-term rebound, though follow-through requires institutional participation.

Outlook for Traders

XRP’s near-term direction hinges on whether it can hold the $2.39–$2.41 support range. A sustained defense could invite short-covering, while a break below $2.35 risks accelerating declines.

Despite the drawdown, the lack of capitulation volume suggests profit-taking rather than panic. Still, whale transfers remain a critical wildcard, and institutional desks continue to monitor Ripple-linked flows for signs of liquidity rotation.

Reclaiming $2.47 remains the decisive threshold between stabilization and a deeper technical correction.

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