XRP fell sharply on Tuesday, dipping nearly 4% as institutional selling pushed the token below the $2.99 resistance level. A surge in trading volume—almost seven times the daily average—confirmed liquidation activity, with the price stabilizing near $2.878. Traders are now closely watching whether XRP can hold the critical $2.85–$2.87 support band ahead of Ripple’s U.S. banking charter review deadline.

Market Context
Ripple’s pursuit of a national banking charter has drawn regulatory scrutiny, with the OCC’s Oct. 7 review deadline marking a key milestone. Broader macroeconomic factors—including trade tensions and diverging central bank policies—continue to pressure FX and crypto liquidity, weighing on enterprise-oriented tokens like XRP.

On-chain data from Binance shows custody reserves rising roughly 19% over the past week, signaling ongoing distribution pressure even as some whale accumulation persists.

Price Action Highlights

• Resistance: $2.993 confirmed as a strong ceiling after multiple rejections on high volume.
• Breakdown: The heaviest selling occurred between 13:00–15:00 UTC, with volumes spiking to 586.9M as XRP dropped to $2.878.
• Range: XRP traded a 24-hour corridor of $0.144 (4.8%), wider than recent sessions, indicating fragile order books.
• Recovery: A late-session rebound lifted XRP from $2.858 to $2.881, showing short-term stabilization amid thin liquidity.

Technical Analysis

• Support: $2.85–$2.87 is now key; a breach could open a path toward $2.70.
• Resistance: $2.99–$3.00 remains a firm ceiling.
• Volume: Elevated liquidation flows highlight institutional exit pressure.
• Trend: Lower highs below $3.00 signal a bearish bias until clear reversal signals emerge.
• Momentum: Late-session recovery suggests short-term stabilization, though the broader technical setup remains fragile.

What Traders Are Watching

• Whether XRP holds $2.85–$2.87 or extends losses toward $2.70.
• The impact of Ripple’s OCC charter decision on U.S. regulatory positioning.
• Bitcoin’s $125K breakout and its potential influence on altcoins like XRP.
• Whale activity following Binance reserve growth and broader on-chain distribution trends.
• Upcoming SEC ETF decisions in October, which could drive sentiment.