XRP volume spike fuels sell-off; key support at $1.34
XRP experienced a large surge in trading volume across spot and futures markets, coinciding with a 6.46% price decline. Spot volume rose sharply on major exchanges — Upbit (+83%, ~$193M), Coinbase (+34%, ~$111.7M) and Binance (+68%, >$131M) — with total spot flows exceeding $710M and futures trading around $3.76B, suggesting heavy short activity. Price fell from $1.46 to $1.34 and briefly broke the $1.40 support; a break below $1.34 could open the way to $1.25, while reclaiming $1.40 would be needed to target $1.66. On-chain fundamentals remain robust: daily successful XRP Ledger transactions jumped ~40% (from ~1.5M to ~2.5M) and XRP’s RWA on-chain market cap rose ~23.4% to $2B, briefly surpassing Solana’s RWA figure. Arizona’s proposed Digital Assets Strategic Reserve Fund also lists XRP alongside BTC and others. Despite strong network activity and RWA growth, increased selling pressure and a bearish 4-hour price structure signal near-term downside risk for traders.
Bearish
The immediate market impact is bearish. Large increases in both spot and futures volume coincided with a ~6.5% price drop, and the disproportionate futures flow (~$3.76B) points to leveraged shorting amplifying downside. Price broke the minor $1.40 support and now sits on $1.34 — a failure below that level would likely target $1.25. Short-term technical structure (4-hour) shows selling momentum, so traders should expect elevated volatility and downside risk until buyers reclaim $1.40. However, mid-to-long-term fundamentals are supportive: on-chain transactions climbed ~40% and XRP’s RWA market cap rose to $2B, which can underpin recovery once selling pressure eases. This pattern resembles prior episodes where heavy leveraged selling produced swift declines followed by consolidation and recovery driven by improving on-chain metrics. For traders: consider tighter risk management, monitor futures open interest and funding rates for continued short pressure, watch $1.34 and $1.40 as critical levels, and use on-chain spikes as signals for possible accumulation opportunities rather than immediate directional confirmation.