XRP Faces Key Support as Ripple Co-Founder Sells XRP
XRP is currently trading at $2.43, showing a slight dip of 0.1% from the previous day. The token has lost 5.4% in the past week and 18% over the last month. This decline represents a 33% drop from its July peak of $3.85.
Despite the recent volatility, the 7-day trading range between $2.21 and $2.56 indicates a tight consolidation. The 24-hour spot trading volume reached $4.12 billion, up 19.9% from the previous day, signaling increased market participation.
Derivatives activity also rose, with open interest up 2.86% and futures volume increasing by 14.56% to $5.97 billion.This suggests traders are re-entering positions,leading to higher volatility.
Ripple Co-Founder’s XRP Sale Sparks Concerns
On october 20, Chris Larsen, a Ripple co-founder, sold 50 million XRP tokens worth about $120 million. This was his first major sale since july. The move raised concerns about insider selling, especially as XRP was near a crucial support level.
While the sale caused some pessimism on social media, on-chain data from Santiment showed the market absorbed the selling pressure without panic. Historically, such sentiment spikes have led to short-term recoveries.
XRP ETFs and Ecosystem Developments Provide Support
The upcoming spot XRP ETF rulings from CoinShares, Bitwise, and grayscale could provide a counterbalance. Analysts predict a 95% approval rate, potentially unlocking $5-8 billion in inflows.
Additionally, Evernorth’s $1 billion treasury raise, backed by SBI and Kraken, and Ripple’s RLUSD stablecoin nearing $1 billion, expand XRP’s institutional use cases.
Technical Analysis: XRP’s Short-Term Outlook
XRP is testing short-term support on the daily chart, near the lower Bollinger Band. The relative strength index at 39.9 shows mild bearish momentum but not oversold conditions. If buyers intervene, a rebound is possible.
A sustained hold above $2.40 could stabilize momentum and target the $2.60-$2.70 range. Though, a break below $2.10 might accelerate liquidations, exposing the next support level near $1.80.
