XRP’s $3 Battle Intensifies as Spot Demand Evaporates

XRP faces mounting resistance at the critical $3 psychological barrier as market liquidity thins to concerning levels.

The Struggle for Momentum

Spot trading volumes have collapsed by over 60% from recent peaks, leaving the digital asset struggling to maintain upward pressure. Market makers are pulling back liquidity just when XRP needs it most—typical Wall Street timing, always there when you don't need them, gone when you do.

Technical indicators flash warning signals across multiple timeframes. The 50-day moving average, once a reliable support level, now acts as resistance. Trading ranges have compressed to their tightest levels in months, suggesting an imminent volatility explosion.

Institutional interest, once the great hope for sustained price appreciation, has faded faster than a trader's New Year's resolution. The regulatory clarity that was supposed to unlock billions in institutional capital? Still waiting—though the lawyers are certainly getting paid.

Retail investors who piled in during the last rally now face the classic crypto dilemma: hold through the stagnation or cut losses and move to greener pastures. Meanwhile, the derivatives market shows increasing bearish positioning, with put options gaining popularity among sophisticated traders.

The path to $3 looks increasingly like climbing a greased pole—possible in theory, painful in practice, and likely to leave everyone involved somewhat bruised.

News Background

XRP traded flat to lower in the 24 hours to Oct. 10, opening near $2.83 and closing at $2.82. The token briefly rallied to $2.85 before rejection, with volumes spiking above 123M at 08:00 — double the daily average — confirming institutional activity at key levels. The session came as traders positioned ahead of macro catalysts, with Fed policy and regulatory clarity continuing to shape sentiment.

Price Action Summary

• XRP oscillated between $2.79 and $2.85, a 2% corridor.
• Resistance held firm at $2.85, with rejection in the 12:00 hour.
• Support persisted at $2.78, repeatedly defended on high volume.
• Late session saw a drift from $2.83 to $2.82, with 1.6M prints confirming continued distribution.
• Final bars showed waning volume, hinting at selling exhaustion near $2.82.

Technical Analysis

The $2.85 zone has hardened into supply after multiple rejections, while $2.78 remains the key support pivot. Exchange inflows and distribution from large holders reinforce near-term downside risk, particularly as leverage builds with futures OI approaching $9B.

Still, repeated defenses of $2.78 signal institutional accumulation at the base. A break above $2.85 could reopen $2.90–$3.00, while a slip through $2.78 risks accelerating toward $2.72.

What Traders Are Watching?

• Whether $2.78 continues to hold as the structural floor.
• If leverage positioning unwinds, adding volatility to the $3.00 retest attempt.
• Ongoing whale distribution versus signs of dip accumulation.
• ETF and Fed catalysts as drivers of the next breakout from the $2.78–$2.85 range.