XRP Drops 6%: Bitcoin Sentiment Puts Pressure on Ripple

XRP Drops 6% As Negative Bitcoin Sentiment Puts Pressure On Ripple

5 November 2025 at 10: 26

Reading time: 2 minutes

XRP The price experienced a sharp decline on Tuesday, breaking through crucial support levels on exceptionally high volume. This marked a strengthening of bearish momentum, as traders focused on the psychological $2,00 barrier.

XRP declined by 6,4% to $2,20 within 24 hours, following an intraday peak of $2,35 amid heavy institutional selling pressure. The token traded within a wide range of 12,4%, highlighting XRP’s isolation from the broader crypto market. Trading volumes increased to 356,7 million, representing a 126% increase above the 24-hour moving average. This confirms the active participation of institutional investors in this downward movement. Despite attempts to break the resistance at $2,37, rebound attempts towards $2,33 and $2,23 were consistently rejected. The inability to hold gains above previous support indicates a structural shift from accumulation to active distribution.

The price action took a strong bearish turn after the break below $2,17, with XRP temporarily reaching a bottom at $2,08 before stabilizing around $2,20. Intraday data showed a short-lived recovery from the base at $2,11, with a 4,5% increase to $2,209 on a short-lived volume spike of 5,8 million tokens. However, this recovery was quickly stalled near $2,216 amid declining liquidity. The belated price recovery coincided with news that Ripple’s RLUSD stablecoin surpassed $1 billion in market cap, but technical dynamics remained primarily driving the price. The decrease in momentum above $2,22 indicated limited conviction behind the recovery, leaving XRP trapped below the previous breakout levels.

Technical analysis

The session confirmed a clear bearish bias, with XRP forming successively lower highs and lower lows towards the resistance at $2,37. This pattern validates a short-term downtrend that is amplified by expanding volume during sell-offs and contracting during recoveries — a classic hallmark of institutional distribution. Momentum indicators have turned negative, with the relative strength index (RSI) now moving in neutral territories after falling from overbought territory earlier this month. A failure to reclaim the $2,17 level suggests further weakness unless demand is regenerated around the $2,08-$2,11 consolidation base. While XRP’s structure hints at a potential oversold recovery, volume changes and failed retests suggest that rallies could continue to face stiff resistance until broader market sentiment improves.

Traders are closely monitoring whether XRP can hold above the $2,08 support to prevent losses from accelerating towards the psychological $2,00 level. A sustainable recovery above $2,22 is needed to reassert a bullish position, while failure to hold current levels risks a fresh wave of liquidation. The spikes in institutional volumes during declines confirm active repositioning rather than retail-driven volatilityFor tactical traders, the zone between $2,17 and $2,22 represents the crux of the price, which could determine the short-term direction.

Frequently Asked Questions

Can XRP Hold Its Support at $2,08?
Yes, it's crucial that XRP holds this support to prevent further losses. If this level breaks, we could see a rapid drop towards $2,00.

What would be a recovery sign for XRP?
A sustained rise above $2,22 would be necessary for a recovery phase and to re-establish the bullish outlook.

What does high institutional trading activity say about the market?
The increased trading activity among institutional traders suggests that the current price movements are not driven by retail traders, but rather indicate a strategic repositioning.

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