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XRP Holds $2.90 After $500M Liquidated From Aggressive Long Positions

XRP dropped nearly 4% on Tuesday, falling from resistance near $2.99 to stabilize around $2.878 as institutional selling intensified. Trading volumes surged to almost seven times the daily average, with liquidations exceeding $500 million. Market participants are now closely watching whether the $2.85–$2.87 support zone can hold ahead of Ripple’s U.S. banking charter review.

Market Overview
Ripple’s application for a national banking charter faces regulatory scrutiny, with the Oct. 7 OCC review deadline being a critical milestone. Broader macro pressures, including trade disputes and diverging central bank policies, continue to weigh on crypto liquidity, affecting enterprise-focused tokens like XRP.

Binance custody data shows reserves rose ~19% over the week, indicating selling pressure, even as some whale accumulation continues on-chain.

Price Action Snapshot

  • Resistance: $2.993 held strong throughout the session.
  • Breakdown: Heavy selling between 13:00–15:00 UTC drove XRP to $2.878 on 586.9M volume.
  • Range: 24-hour trading spanned $0.144 (4.8%), wider than recent sessions.
  • Recovery: XRP bounced late in the session to $2.881, suggesting short-term stabilization.

Technical Insights

  • Support: $2.85–$2.87 is critical; a breach could expose $2.70.
  • Trend: Lower highs below $3.00 reinforce a bearish bias.
  • Volume: Sevenfold increase highlights institutional liquidation pressure.
  • Momentum: Minor late-session rebound hints at stabilization, but the setup remains fragile.

Key Watchpoints

  • Holding of $2.85–$2.87 support.
  • Impact of Ripple’s OCC charter review.
  • Correlation with Bitcoin’s $125K levels and broader altcoin trends.
  • Whale accumulation patterns and on-chain distribution.
  • Upcoming SEC ETF decisions as potential catalysts.

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