XRP retreated 4.3% on Wednesday, dropping from $2.09 to $2.00 as traders unwound risk following Bitcoin profit-taking — despite institutional flows into XRP ETFs surging well above trend. The move highlights a growing divergence between strong fundamental inflows and short-term technical weakness in the token.
Institutional trading activity spiked 54% above the weekly average, signaling strategic selling at resistance, not retail-driven panic.
What You Need to Know
XRP fell 4.3%, underperforming the broader crypto market by ~1%.
Institutional flows jumped 54% above the 7-day average — consistent with distribution at resistance.
ETF inflows remain strong, but XRP continues to fail at the $2.09–$2.10 ceiling.
Exchange balances dropped to 2.6B tokens, the lowest in 60 days — tightening long-term supply.
The rejection at $2.08 triggered a 205% volume surge (172.8M tokens), flipping the move into a clean failed breakout and driving price back to the $2.00 psychological support.
Market Background
U.S. spot XRP ETFs added another $170 million in inflows this week — marking yet another week of zero outflows.
Market makers report heavy layered sell pressure above $2.10, with persistent offers blocking upside.
Exchange-held XRP supply dropped from 3.95B → 2.6B over two months, a structurally bullish signal despite near-term weakness.
XRP lagged peers as the CD5 index fell 3.1%, suggesting the move was token-specific, not macro-led.
The result is a market caught between strong long-term accumulation and short-term technical rejection.
Price Action Summary
High → Low: $2.09 → $2.00
Daily range: 5.4%
Peak volume: 172.8M at 19:00 UTC (205% above daily avg)
Resistance rejections: Multiple failures at $2.08–$2.10
Late-session stabilization: Higher lows forming at $1.999–$2.005
Technical Analysis
Support
$2.00: Psychological level and first defensive line
$1.95: Secondary demand zone from prior accumulation
Resistance
$2.09–$2.10: The key barrier; sellers defending aggressively
A close above $2.10 flips structure short-term bullish
Volume Structure
54% above weekly trend → institutional flows, not retail breakdown
Volume spike during the failed breakout confirms active sell walls
Market Structure
Price remains inside a multi-month triangular compression, tightening as exchange supply falls.
Short-term momentum bearish, with bounce attempts capped under $2.08.
What Traders Are Watching
$2.00 test #2: A breakdown exposes $1.95 quickly.
ETF inflows: Continued inflows offset spot weakness; any slowdown would remove a key support pillar.
Breakout confirmation: Requires multiple hourly closes above $2.10 with sustained >100M volume.
Compression setup: Structure suggests the next breakout or breakdown will be larger than the last.
Shrinking exchange supply: The wildcard — thinner supply can accelerate moves once direction confirms.
