by Enoch Mwathwa
XRP has dropped to a six-week low near $2.12 as the broader market continues to reject any recovery attempts. The token remains trapped in a tight range, while weakening volume, shrinking profits, and fading trader confidence weigh down sentiment. These pressures create a fragile environment where even small moves trigger sharp reactions.
Market Weakness Deepens as XRP Volume Falls and Supply in Profit Drops
XRP price now trades at $2.13 after a 1% daily decline. The token has held within the $2.12–$2.50 band for a week and sits 41% below its July peak of $3.65. Trading activity keeps cooling. Daily volume slipped to $4.77 billion, which is a 29% drop from the previous session. Derivatives follow the same path. Futures volume fell 26% to $6.5 billion, while open interest dipped to $3.71 billion after a mild decline. Traders are closing positions instead of adding exposure, showing caution as momentum weakens.
On-chain data adds more pressure. According to Santiment, in an X post, it was reported that only 58.5% of XRP’s supply sits in profit, the lowest level in a year. This stands out because XRP still trades at four times last year’s price, near $0.53. However, 41.5% of tokens, about 26.5 billion XRP, remain underwater. This creates a heavy market structure. Large cohorts of holders may sell on any bounce to reduce losses. Combined with declining volume, the market becomes increasingly sensitive to sudden shifts and sharp swings.
Even so, several short-term catalysts shape sentiment. Spot XRP ETFs continue to attract institutional attention. Canary Capital’s XRP ETF launched on Nov. 13 and posted $58 million in volume on day one. Still, price softened as large holders took profits during a weak market phase. The Bitwise XRP ETF may launch on Nov. 20, and analysts expect new inflows if trading begins on schedule. The end of the recent U.S. government shutdown may also help liquidity return to risk assets as ETF activity rises.
Technical Breakdown Shows Shrinking Strength as Key Levels Come Into Focus
XRP has lost strength after failing to reclaim the $2.56 resistance level. A symmetrical triangle formed between August and mid-September as the price pushed into a tight range with lower highs and higher lows. This pattern often signals tension before a larger move. The eventual breakout attempt lacked force. Buyers could not sustain momentum. A series of lower highs developed across late September, mid-October, and early November. This pattern shows fading buyer control and rising sell pressure.
The drop to $2.12 marks a key support test. All major moving averages from the 10-day to the 200-day point toward ongoing selling. The relative strength index sits at 38, which signals weak but neutral momentum. A push above $2.30, followed by a clean break over $2.56, would improve the near-term setup. That move could reopen a path toward the $2.80–$3.00 zone if demand returns. Failure to defend $2.12 puts $1.80 at risk. Stronger selling could even drag the price back toward $1.60, where buyers stepped in last time.
#blockchain #crypto, #decentralized, #distributed, #ledger
