XRP Volume Surges as Institutional Selling Caps Price Momentum

XRP saw a notable jump in trading activity on Tuesday, gaining 0.50% to trade around $2.0925, yet it continued to underperform the broader crypto market. Despite the modest price uptick, trading volume spiked nearly 38% above weekly averages, pointing to heightened institutional involvement. Instead of fueling a sustained breakout, however, the volume surge revealed hidden selling pressure as larger holders appeared to use improved liquidity to unwind positions.

XRP briefly pushed through the key $2.12 resistance level and touched $2.17, but the rally quickly unraveled. The sharp rejection aligned with signs of distribution, as order books showed heavier offer-side liquidity while other major assets like Bitcoin and Solana attracted stronger inflows. The price action suggests that institutional players were more focused on harvesting liquidity than building long-term exposure.

Technically, the failure to secure a close above $2.12 reinforces this barrier as a strong resistance zone. The rejection occurred on abnormally high volume, with nearly 190 million tokens traded during the attempted breakout. XRP now sits inside a broad compression range between $2.083 and $2.17, where buyers and sellers are reshuffling positions. While the higher low at $2.083 offers some support, the inability to generate momentum beyond $2.12 keeps the near-term bias tilted toward neutral-to-bearish conditions.

Momentum indicators show mild bullish divergence, but this signal is weakened by declining volume on recovery attempts and the clear overhead supply created by the failed breakout. Holding the $2.09 support area is crucial; losing this level could open the door to deeper pullbacks toward $2.05 or even $2.00. For bullish continuation, XRP must reclaim $2.12 and ultimately break above $2.17 with convincing volume. Until then, traders should expect range-bound movement and potential underperformance relative to the broader market as institutions continue to influence liquidity dynamics.