After a sharp move upward, XRP faces profit-taking near the $2.70 level as traders react to supply pressure and weakening momentum.
XRP’s bullish momentum has cooled after a 7% surge, with price pulling back from a major resistance zone visible on the daily chart. Data from Binance shows XRP recently touched the $2.70–$3.00 range, a zone that has historically triggered heavy selling pressure.
Technical indicators highlight that the pullback is largely due to profit-taking activity and a lack of volume confirmation on the breakout. As a result, XRP is now consolidating near the $2.40 level, retracing toward a strong demand zone between $2.20 and $2.30.
“The market is showing a textbook reaction to overhead supply,” said BITX technical analyst. “The $2.70 area represents a previous distribution level, and traders are locking in gains after an extended short-term rally.”
The broader crypto market has shown mild cooling in recent sessions, which has contributed to XRP’s retracement. Bitcoin’s sideways movement has also dampened momentum across altcoins, causing traders to secure profits before the next leg higher.
Volume data confirms that the latest rally lacked strong institutional participation, suggesting that buyers were hesitant to chase higher prices after the breakout. As a result, sellers regained control once XRP hit the supply zone.
BITX analysts note that the correction remains technical rather than fundamental, with XRP maintaining higher-lows structure on the daily timeframe. “A retest of the demand block is normal and even healthy,” explained another market observer. “If buyers defend the $2.20 area, we could see renewed upside momentum back toward $2.70.”
XRP’s next move depends on its ability to hold above the green demand zone. A rebound from this level could reaffirm bullish sentiment and signal a continuation of the uptrend. However, a breakdown below $2.20 could expose the token to deeper support near $2.00–$1.90.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.