5 Minutes
XRP price slips toward a key support level
At the time of writing, XRP was trading around $2.43 after testing the $2.40 support zone, marking a soft pullback as traders weigh fresh insider selling against broader market catalysts. The token is down roughly 5% for the week and about 18% over the last 30 days, retracing nearly 33% from its July peak of $3.85.
The last seven days have shown tight consolidation, with a 7‑day trading range between $2.21 and $2.56. Meanwhile, 24‑hour spot volume climbed to $4.12 billion — a daily increase of 19.9% — suggesting elevated buyer and seller participation as market participants reassess positions.
Insider token sale raises short‑term caution
Chris Larsen sells 50 million XRP
On Oct. 20, Ripple co‑founder Chris Larsen sold 50 million XRP, roughly $120 million at prevailing prices. CryptoQuant analyst Maartunn flagged the transfer, and the move reignited conversation about insider selling amid fragile price action. The sale prompted waves of pessimism on social platforms, where "insider exit liquidity" trended on X, stoking short‑term fear among some retail traders.
Yet on‑chain metrics tell a more nuanced story: Santiment and other data providers show the market largely absorbed the supply without cascading liquidations. That dynamic suggests the sale increased FUD (fear, uncertainty, doubt) briefly but did not spark a broader panic. Historically, such spikes in sentiment often precede short, choppy recoveries once retail fear starts to ebb.
Derivatives show traders re‑entering positions
Derivatives activity has ticked up as well. CoinGlass data shows open interest rose by 2.86% while futures volume expanded 14.56% to $5.97 billion. This mix of higher volume and rising open interest points to traders re‑entering positions, which can increase volatility even without a clear directional bias. The market also felt the effects of earlier October turbulence, when concerns about macro policy and more than $130 million in liquidations accelerated the correction.
ETF optimism and institutional flows could cushion downside
Spot XRP ETF filings remain a potential catalyst
Pending spot XRP ETF rulings — following filings from CoinShares, Bitwise and Grayscale — give bulls a plausible upside path. Several analysts put approval odds at around 95%, estimating that an ETF greenlight could unlock $5–8 billion of inflows, a scenario reminiscent of ETH's ETF‑driven rally earlier this year.
Institutional use cases are expanding: Evernorth’s $1 billion treasury raise (backed by SBI and Kraken) and Ripple’s RLUSD stablecoin nearing $1 billion both tie directly to XRP holdings, enhancing the token’s on‑chain utility and institutional relevance.
Technical picture: watch $2.40 closely
XRP is currently hugging the lower Bollinger Band on the daily chart. The relative strength index sits around 39.9, signaling mild bearish momentum but not an oversold condition that typically invites immediate capitulation.
XRP daily chart
Major moving averages from the 10‑ to 200‑day are above the current price, indicating a broader downtrend. A sustained hold above $2.40 could stabilize momentum and set a near‑term target in the $2.60–$2.70 band, which coincides with the mid‑Bollinger area. Conversely, a decisive break below $2.10 could accelerate stop‑loss cascades and expose the next solid support near $1.80. For any meaningful bullish reversal, reclaiming $2.70 is a key threshold toward challenging the $3.00–$3.15 resistance zone.
What traders should monitor
Key metrics to follow in the coming days include spot volume, futures open interest, on‑chain transfer flows from large wallets, and official ETF docket updates. Together, these signals will help determine whether Larsen’s sale remains a short‑lived headwind or whether structural demand from ETFs and institutional treasuries can reassert control.
Overall, XRP’s path forward will likely be decided by a mix of technical holds at $2.40, macro sentiment, and the pace of institutional inflows tied to potential ETF approvals and growing on‑chain adoption.
Source: crypto
Comments
Armin
Pretty balanced take, watch 2.40 closely. Spot vol up is interesting, if inflows materialize we might bounce to 2.6–2.7, otherwise messy drop to ~1.8 possible. quick thought
blockflux
Really? Chris sells 50M and ppl act surprised… absorbed 'cleanly'? feels like short term panic, ETF talk might prop it up but I'm skeptical, could be choppy
Leave a Comment