The XRP price has demonstrated notable resilience by successfully defending the psychological support of $2.00, driven primarily by unprecedented institutional demand for its exchange-traded products. According to the most recent market data analyzed by Shaurya Malwa of CD Analytics, price action is at a critical inflection point, where a clear breakout is needed above $2.11 to reactivate bullish momentum. This scenario unfolds in a context where major players are absorbing available supply, while retail investors remain cautious regarding recent volatility.
During the last trading sessions, a remarkable technical phenomenon characterized by a massive increase in trading volume has been recorded, specifically when the asset tested the $2.00 floor. Records indicate that, during the drop from $2.03, volume spiked to 129.7 million, representing a 251% increase over the average of the last 24 hours. This behavior confirms that considerable selling pressure exists, but more importantly, validates that institutional buyers absorbed liquidity exactly at the psychological support level, generating a “V-shaped” rebound.
Can institutional demand sustain the technical rebound facing persistent retail caution?
The asset’s macroeconomic environment is dominated by a rotation of capital into regulated products, highlighting that U.S. spot XRP ETFs have surpassed $1 billion in cumulative demand. This achievement represents the fastest early adoption pace for any “altcoin” ETF, underscoring robust professional interest. Therefore, although retail sentiment remains muted, institutional participation continues to be strong, creating a divergence where “strong hands” accumulate during market weaknesses, while short-term traders hesitate to re-enter for fear of further corrections.
From a technical and market perspective, the defense of the $2.00 level is the most important dividing line both technically and psychologically for the immediate future. If the asset manages to overcome the resistance of $2.08 to $2.11, an asymmetric move could be triggered towards the next supply zone located between $2.20 and $2.26. However, the cryptocurrencies sector remains volatile; a failure to hold the current floor could lead to a retest of $1.95, a level where buying driven by ETF flows would likely reappear.
To conclude, the market shows stabilization above support, although range compression persists requiring a decisive catalyst to resolve. Momentum indicators suggest a bullish divergence forming, but it is crucial that volume expands during upside moves and not just during drops. Thus, traders must closely watch the $2.11 barrier, as its breakout would confirm that institutional accumulation has been successful and that the asset is ready for medium-term expansion phases.
