XRP Battles Critical Thresholds as RSI Shifts Signal Trader Caution

XRP’s price action on Wednesday painted a picture of sustained seller dominance, with the altcoin struggling to maintain footing above critical technical levels. Large-volume selling bursts coincided with rejection attempts near $1.90, forcing traders to reassess their positioning as year-end liquidity constraints tighten their grip on market dynamics. The latest data shows XRP trading at $1.92, down 4.81% over 24 hours, with the range confined between $2.02 (intraday high) and $1.90 (low)—a compressed bandwidth that reflects both weakened buying interest and deliberate selling discipline.

Big Money on the Sell Side: The Volume Story

The most revealing aspect of Wednesday’s session was the dramatic volume spike at resistance. When XRP approached $1.9061, trading volume surged to approximately 75.3 million coins—nearly double the daily average. This concentration of volume didn’t translate to a breakout; instead, it marked a rejection point. The pattern reveals a “sell-on-strength” dynamic, where professional traders are using rallies as exit opportunities rather than taking them as bullish signals.

The presence of large sellers became even more apparent during the $1.867–$1.865 decline, where a sudden 2.7 million coin trading burst accelerated the move lower. These aren’t gradual, thin-volume slides—they’re coordinated selling waves suggesting institutional participation. In a market characterized by reduced holiday-season liquidity, such concentrated volume carries disproportionate weight in determining price direction.

Technical Terrain: Support Erosion and RSI Shifts

As sellers maintained pressure throughout the session, XRP slipped below the $1.8615–$1.8700 working support band that had previously anchored short-term trades. This breakdown proved significant because $1.87 has now transformed from a buyer’s threshold into a critical decision point requiring reclamation. The horizontal congestion pattern that dominated earlier trading has evolved, shifting the focus to a new defensive range at $1.860–$1.855.

RSI shifts occurring during this period warrant particular attention. Technical analysts are divided in their interpretation—some cite ascending wedge patterns suggesting continued downside pressure, while others identify RSI divergences typically associated with short-term oversold conditions. This conflicting technical narrative has weakened trader confidence, creating an environment where rallies toward $1.90 face immediate selling rather than conviction-based follow-through.

The intraday descent from $1.878 to $1.86, supported by those consecutive volume surges, represents a 24-hour range compression of approximately 2.1%—a tight band that reflects the cautious positioning plaguing the market during low-liquidity periods.

What Buyers and Sellers Are Watching

The tactical battlefield has become clearer: dip-buyers are seeking opportunities near $1.86, while aggressive sellers are waiting for any strength approaching $1.90 to reload short positions. Whether this selling pressure proves temporary or marks the beginning of a deeper pullback depends entirely on whether volume expands during actual breakout attempts—not during these low-liquidity consolidation spikes.

For a meaningful reversal, XRP would need to reclaim $1.87 convincingly, potentially reopening the $1.90–$1.91 zone as a near-term target. Failure to achieve this leaves $1.85 as the next critical support level defending against steeper declines. Current market conditions—compressed liquidity, seller dominance at rallies, and deteriorating RSI signals—suggest the path of least resistance remains downward unless buying pressure materializes at support levels.