TLDR
- XRP dropped below the $2.30 support level and retested May lows around $2.05-$2.08
- The altcoin faces rejection at $2.60 resistance level and is trading in a range formation since March
- Capital outflows are intensifying with CMF at -0.07 showing heavy selling pressure
- Open Interest climbed to nearly $5 billion following SEC review of WisdomTree XRP Trust
- Technical indicators remain bearish with key resistance at $2.22 and support at $2.05-$2.08
XRP has encountered fresh selling pressure as the altcoin broke below key support levels in recent trading sessions. The digital asset faced rejection at the $2.60 resistance level earlier in May and has since declined to test lower support zones.
The price action shows XRP trading below the critical $2.30 mid-range level after forming what appears to be a range-bound pattern since March. This range formation has replaced earlier expectations of a bullish recovery following the reclamation of a descending trendline in April.
XRP recently tested the early May low at $2.08, with the current price consolidating around the $2.20 level. The altcoin formed a low at $2.081 before showing minor recovery attempts above $2.12.
Range Formation Dominates Price Action
Technical analysis reveals XRP has been respecting a range formation with the mid-point at $2.27. This level has acted as both support and resistance since March, reinforcing the sideways trading pattern. The range high sits at $2.60, where XRP faced rejection in mid-May at its March highs.
The price is currently trading below the 100-hourly Simple Moving Average and the $2.20 level. A bearish trend line has formed with resistance at $2.218, near the 50% Fibonacci retracement level from the recent swing high to low.
Capital flow indicators paint a bearish picture with the Chaikin Money Flow (CMF) reading -0.07, indicating heavy outflows from the market. The Directional Movement Index (DMI) confirms a building bearish trend, while the On-Balance Volume (OBV) continues sliding lower.
Technical Levels and Market Structure
The liquidation heatmap shows that multiple liquidity clusters have been swept in recent days. One cluster remains in the $2.05 region, suggesting this zone could be revisited if selling pressure persists.
For upside movement, XRP faces immediate resistance at $2.20, followed by the key $2.22 level. A clear break above $2.25 could target the $2.28 and $2.30 resistance zones. Extended gains might reach $2.40 in the near term.
On the downside, initial support lies at $2.125, with major support at $2.08. A break below this level could see XRP decline toward $2.05 or even the $2.00 zone.
The hourly MACD is gaining pace in bearish territory, while the RSI has dropped below the 50 level, confirming the current downward momentum. These technical indicators support the view that selling pressure remains elevated.
Despite the bearish technical setup, XRP saw increased Open Interest climbing to nearly $5 billion. This development coincided with the SEC formally initiating a review of the WisdomTree XRP Trust, which has fueled speculation around the digital asset.
The altcoin continues to face headwinds as Bitcoin’s short-term momentum also remains bearish, creating additional pressure across the broader cryptocurrency market.
XRP is currently testing the $2.08 support level with traders watching for either a bounce from this zone or further decline toward the $2.00-$2.05 target area.
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