XRP (CRYPTO: XRP) has plunged 8% to $2.16 on Tuesday as technical indicators show the downtrend may continue further.
Price Walks The Edge Of Breakdown
XRP Price Action (Source: TradingView)
XRP remains pinned beneath the descending trendline that has capped every rebound since September.
Each attempt to climb toward the trendline has failed, producing a sequence of lower highs that confirms a sustained bearish pattern.
The 20-day EMA stands near $2.49, the 50-day at $2.63, and the 100-day close to $2.69 — all positioned above price and sloping lower.
The 200-day EMA near $2.60 has flipped from support into resistance, signaling that the longer-term bias has shifted fully in favor of sellers.
As long as XRP trades below $2.50, bullish momentum remains absent.
Parabolic SAR dots stay above price and continue to expand lower, showing that downside pressure has not eased.
The next critical support sits at $2.25–$2.20, the same zone defended in August and early October.
A close below this area could expose $2.16 and the psychological $2.00 handle, where prior accumulation began.
For a recovery, XRP must first close above $2.46 to invalidate its latest lower high.
A decisive breakout through the EMA cluster between $2.50 and $2.63 would be the key confirmation, potentially setting up a retest of $2.85 and higher targets at $3.00–$3.20.
On-Chain Flows Show Risk Aversion
XRP Netflows (Source: Coinglass)
Coinglass data shows a clear trend of red bars since mid-July, indicating that traders continue sending XRP to exchanges rather than withdrawing to private wallets.
The persistent outflows signal caution and profit-taking instead of accumulation.
While the latest Nov. 4 reading reflected a $4.6 million inflow, one isolated session is not enough to shift sentiment after weeks of consistent selling.
Historically, each small inflow has stalled near the EMA cluster, producing another lower high.
Analysts note that a genuine shift would require several consecutive sessions of strong inflows accompanied by higher volume.
Until that occurs, rebounds are likely to fade.
The market needs three elements for confirmation: sustained inflows, a daily close above $2.50, and a high-volume breakout through $2.85.
Ripple Prime Expands Institutional Access
Ripple's recent acquisition of Hidden Road and the U.S. launch of Ripple Prime mark a strategic push into regulated prime brokerage for digital assets.
The platform enables institutions to execute over-the-counter spot trades in assets including XRP and RLUSD, giving Ripple its first formal presence inside Wall Street's liquidity network.
This move acts as a long-term catalyst for XRP's institutional adoption, though near-term market response remains muted.
On-chain data still points to net outflows and limited accumulation, suggesting that traders have yet to price in Ripple Prime's potential impact.
The product could strengthen XRP's role in settlement and liquidity infrastructure over time, but until exchange flows confirm renewed demand, the chart continues to favor sellers.
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