Despite the recent broad market rally driven by the sector leader, the XRP technical outlook remains uncertain as the asset struggles to keep pace with the explosive momentum of its peers. Shaurya Malwa, an analyst at CD Analytics, highlights that although the token has posted moderate gains, its trading volume remaining below historical averages raises serious doubts about the true strength and sustainability of the current move compared to Bitcoin’s aggressiveness.
The cryptocurrency market experienced a significant shake-up when Bitcoin forcefully pushed above the $94,000 mark, triggering a massive wave of liquidations that affected 107,333 traders in just 24 hours. Total forced exit figures amounted to $387.5 million, including a dramatic single liquidation of $23.98 million on a BTC long position. In this high-volatility environment, XRP managed to post a 4.71% gain, oscillating within a $0.09 price range, although its trading volume surprisingly sat 5.88% below its weekly average, indicating caution.
On the other hand, technical data reveals crucial details about investor behavior during this rally. Although there was a specific volume burst of 128.7 million tokens during the breakout attempt, participation dropped swiftly shortly after. This suggests a lack of immediate institutional conviction at higher levels, leaving the asset lagging the sector benchmark by 1.55%. This divergence between a strong macro rally and weak relative performance sets the stage for a complex scenario in the upcoming trading sessions.
Is this behavior a prelude to a delayed recovery or a bull trap?
This divergent behavior underscores a classic capital rotation where investors prefer higher-beta assets during risk-on moves. The digital economy is witnessing smart money flowing into clear leaders, leaving XRP in a trailing position. Momentum indicators on lower timeframes show softening follow-through, interpreted more as gradual profit-taking rather than a full trend reversal, but it confirms that bulls do not yet have full control of the market.
From a structural standpoint, the asset is caught between a constructive local setup and worrying relative weakness. Critical support has firmly consolidated at the $2.05 level, where multiple intraday tests have convincingly withstood selling pressure. However, resistance at $2.17 remains a formidable obstacle that buyers must overcome with expanding volume to confirm real alignment with broader flows and avoid getting trapped in a sideways consolidation band.
What should traders watch for in the critical next 48 hours?
Likewise, history suggests that XRP often lags before making accelerated catch-up moves. If Bitcoin manages to sustain levels above $94,000, we could see a drag effect. However, if current support fails, the next significant demand level sits between $1.98 and $2.00, a zone where ETF-driven demand has recently provided a stabilizing floor for the price, offering a safety net for long-term investors.
To conclude, the asset’s immediate future depends on its ability to attract broader participation to validate the breakout of technical resistance levels. The coming sessions will be vital to determine if the asset will accelerate to catch up with its peers or fall into deeper consolidation. Vigilance over broader market liquidation trends will be essential, as a redistribution of capital could be the catalyst needed to reignite interest in lagging large-cap assets.
