XRP dropped 4% after failing to break above $2.88, in a session marked by technical rejection at that level, ongoing discussion about possible ETFs tied to the asset, and large-wallet movements. The pullback reflects the interaction between technical levels, institutional sentiment, and regulatory uncertainty, along with growing volatility that is undermining investor confidence.
Technical rejection and market reaction
The rejection at $2.88 triggered immediate selling, creating higher intraday volatility and establishing that price as a key reference for traders. If XRP consolidates above $2.88, it would be read as a sign of strength, while losing major support levels could accelerate the decline and invite more bearish pressure.
Impact of ETF rumors and regulation
The expectation of an XRP ETF acts as a short-term catalyst: approval could attract institutional capital and stronger demand, though even rumors already spark price reactions. However, several companies have ruled out launching XRP products, which limits optimism and keeps the market waiting for official announcements and concrete regulatory timelines, in a context where every new update directly affects sentiment.
Large-holder moves and technical signals
Large-wallet activity serves as an indicator of selling pressure or accumulation: some wallets are accumulating, while others send XRP to exchanges, a signal that often precedes sales. On the technical side, tracking levels and exchange volume is crucial, since volume spikes typically accompany stronger selling, adding to overall market fragility.
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Main resistance: $2.88 (initial rejection).
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Main support: $2.80 (holding this level could contain short-term swings).
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Alarm level: $2.58 (staying below could trigger a deeper drop).
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Exchange volume: significant inflows increase the probability of selling pressure.
Scenarios and risk management
The best-case scenario would be ETF confirmation or institutional inflows, supporting a price recovery. The worst-case scenario combines loss of support, institutional disinterest, and negative regulatory news, which could deepen losses and extend overall pessimism. In both cases, risk management, volume monitoring, and tracking large-holder activity are critical for cautious trading.
Conclusion
The 4% decline after rejection at $2.88 places XRP at a sensitive juncture, where technical factors, large-wallet activity, and ETF speculation converge. Closely monitoring regulatory developments and institutional flows will be key to assessing whether the token regains momentum or enters a phase of greater stability, always with discipline, prudence, and awareness of the market’s growing volatility.
