XRP Faces Critical Technical Test as Major Sell-Off Intensifies

The cryptocurrency sector continues to navigate volatile conditions, with XRP experiencing particularly significant downward pressure. Following substantial divestment by major holders, the digital asset has declined to $2.25. Market technicians are now observing the potential formation of a dreaded "Death Cross" pattern, raising questions about whether XRP has found its floor or faces further depreciation.

Beyond broader market weakness, specific institutional behavior explains the recent price movement. Entities holding large XRP balances—commonly referred to as "whales"—have liquidated approximately 900,000 tokens over a five-day span. This selling activity originated in late October, coinciding with XRP's repeated failure to maintain position above the critical 200-day moving average.

Trading volume surged dramatically during this sell-off, reaching 193.7 million—an 87 percent increase compared to the 24-hour average. This volume spike confirms genuine distribution is occurring rather than retail investor panic selling. Derivatives markets reflect similar institutional wariness, with open interest contracting by approximately 15 percent as traders unwound leveraged long positions.

Technical Indicators Flash Warning Signals

XRP approaches a significant technical juncture with the potential formation of a Death Cross, a pattern that emerges when the 50-day moving average crosses below the 200-day moving average. This development, which hasn't occurred since May 2025, typically signals deteriorating momentum.

Key technical levels currently in focus:

Should investors sell immediately? Or is it worth buying XRP?

• Critical support: $2.25 (current level), $2.20 (psychological barrier), $1.85 (deeper correction)
• Substantial resistance: $2.37-$2.39 zone where sell orders accumulate
• Moving averages: 20-day EMA at $2.49, 50-day EMA at $2.62—both considerably above current price
• MACD indicator: Displaying bearish characteristics with histogram suggesting negative crossover

The established pattern of lower highs at $2.39 → $2.37 → $2.33 confirms the prevailing downtrend. XRP's breach of a multi-month ascending trendline triggered algorithmic selling, applying additional downward pressure.

Potential Catalysts Amid Market Uncertainty

Despite concerning technical indicators, several fundamental developments could provide medium-term support. The scheduled November 13, 2025 launch of Canary Capital's XRP ETF, with subsequent offerings from providers including Bitwise, may generate institutional demand regardless of short-term price fluctuations.

Regulatory clarity has also improved following the SEC's decision to drop its appeal in the Ripple litigation. This resolution may encourage financial institutions to increasingly adopt XRP for cross-border payments—the cryptocurrency's primary use case.

Market participants now watch whether the $2.20 support level will hold. A breakdown below this threshold would likely target the psychologically important $2.00 zone. While elevated volume during the sell-off indicates genuine distribution, potential exhaustion patterns might signal stabilization. The coming sessions will determine whether XRP can reverse its decline or if the looming Death Cross becomes a self-fulfilling prophecy.