XRP Retreats Following Failed Resistance Test

XRP has entered a corrective phase after failing to maintain crucial support levels, with technical analysis now pointing toward $1.85 as the next significant price zone to watch. The digital asset's recent price action revealed notable selling pressure during resistance tests, indicating potential profit-taking by institutional participants.

Market Dynamics Signal Institutional Activity

Analysts observed unusually high trading volume during XRP's resistance encounters, suggesting that sophisticated market participants were strategically selling during price strength. This distribution pattern typically indicates that larger holders are reducing positions, creating headwinds for further upward momentum.

The breakdown below support has triggered technical selling, with the $1.85 level now emerging as both psychological and technical support. Market observers note that this price point represents a convergence of previous resistance-turned-support and Fibonacci retracement levels from recent rallies.

Technical Outlook and Key Levels

  • Immediate resistance forms between $2.10-$2.15, where previous selling intensified
  • $1.85 support represents a 38.2% Fibonacci retracement from recent highs
  • Volume analysis suggests institutional distribution during strength
  • Daily close below $1.85 could trigger further correction toward $1.65

Traders are monitoring whether XRP can establish a base around current levels or if the selling pressure will continue toward the $1.85 target. The market's response at this technical level will likely determine the short-to-medium term directional bias for the cryptocurrency.