XRP is under pressure, slipping 0.97% in the past 24 hours and nearly 5.4% over the last week, even as trading activity picks up. At press time, the token is trading around $2.39, extending losses after falling below its 200-day EMA at $2.60.
Trading volume has surged roughly 6%, indicating higher market participation. However, rising volume amid a price decline typically signals intensified selling, reflecting profit-taking or cautious repositioning by traders amid ongoing market uncertainty.
Bearish sentiment has also been fueled by Ripple co-founder Chris Larsen’s $120 million XRP token sale, which appears to have weighed on investor confidence. Broader market headwinds are compounding the pressure, including heightened US-China geopolitical tensions. This comes after former President Donald Trump indicated that an anticipated meeting between the two leaders “may not happen.”
Crypto market sentiment is also tilting negative. The CMC Fear and Greed Index fell to 29 from 37 last week, pointing to increasing fear and declining investor interest. Meanwhile, the ongoing US government shutdown has stalled approvals for more than 16 crypto ETF applications, raising concerns that XRP-related ETFs, three of which are already overdue, could face additional delays.
Signs of potential recovery
Despite recent losses, some indicators point to a possible rebound. On-chain data shows that whales have accumulated over 30 million XRP recently, suggesting growing confidence among large holders—a pattern that often precedes price reversals.
Ripple’s $1 billion treasury initiatives could also inject momentum into the market. With the US government expected to resume operations soon, delayed XRP ETF decisions by the SEC may finally progress, potentially unlocking a wave of institutional demand.
From a technical perspective, the Relative Strength Index (RSI) has dropped to 39, approaching the oversold zone, which could trigger a rebound. A sustained move above 50 would signal a potential momentum shift and set the stage for a bullish breakout.
However, XRP faces key resistance between $2.45 and $2.50. A decisive daily close above $2.50, accompanied by rising volume, would strengthen bullish sentiment and could mark the beginning of a new upward trend.
