XRP Drops 4% Amid Institutional Selling, Traders Watch Support Levels

NEW YORK, NY — XRP, the cryptocurrency, dropped nearly 4% on Tuesday as institutional selling occurred around mid-day. The price fell below the $2.99 resistance level, causing concern among traders.

A significant spike in trading volume, nearly seven times the daily average, confirmed the selling activity. XRP’s price only stabilized after reaching the support level at $2.878.

Traders are now monitoring whether the $2.85 to $2.87 range can hold, especially as Ripple faces a critical deadline for its banking charter review. The outcome of this review could have significant implications for the cryptocurrency’s future.

Meanwhile, the broader cryptocurrency market is experiencing high trading volumes. Total crypto trading volume reached a yearly high of $9.72 trillion in August, according to recent reports. This marks a 7.58% increase in combined spot and derivatives trading on centralized exchanges.

However, other factors are at play in the market. Bitcoin is also under pressure due to hardening Japanese government bond yields, reaching their highest level in 17 years. This situation may impact risk assets, including Bitcoin, as the yen depreciates.