XRP Near Exhaustion Zone After 34% Holder Drawdown. Could Macro Easing Pump Demand?

Heavy selling pressure drives XRP 2% lower before stabilization near key support. Institutional positioning and fresh open interest suggest accumulation at current levels.

News Background

• XRP extended its decline through the October 16–17 session, sliding 2% from $2.41 to $2.36 amid ongoing institutional liquidation. Market data show more than 150M in daily volume as long-term holders trimmed positions by 34% over the past two weeks.
• The Hodler Net Position Change metric fell from 163.7M to 107.8M tokens — a clear sign of divestment rotation following the mid-month volatility spike.
• Despite the drawdown, open interest rebounded to $1.36B as derivative traders began rebuilding exposure after the weekend washout.
• Market desks say the renewed activity could mark the start of tactical long positioning into quarter-end ETF speculation and macro easing signals.

Price Action Summary

• XRP traded between $2.31 and $2.47 over the 24-hour window, a $0.16 band representing 7% intraday volatility.
• Selling intensified from 14:00–20:00 as price fell 8% intraday from $2.44 to $2.29 before recovering modestly into the U.S. close.
• High-volume reversals above $2.31 confirmed strong spot demand and algorithmic buying into weakness.
• Resistance remains capped near $2.47 where repeated rejection wicks signal ongoing supply pressure.
• The final hour (04:34–05:33) showed $2.35–$2.36 consolidation with 1.6M in volume spikes — typical of controlled re-accumulation phases following forced unwinds.

Technical Analysis

• XRP’s price structure is stabilizing inside the $2.31–$2.47 channel, with the $2.35 pivot acting as a short-term anchor. Volume clusters around this zone indicate institutional accumulation despite the broader risk-off tone.
• A clean reclaim of $2.47 would invalidate the near-term bearish setup and open a path toward $2.55.
• Momentum indicators remain neutral-to-oversold, while funding rates turned slightly positive — a sign that short-covering has slowed. Analysts expect continued choppy consolidation until macro risk recedes or ETF-related flows accelerate.

What Traders Are Watching

• $2.31–$2.35 support zone — base defense levels signaling buyer absorption.
• $2.47 resistance reclaim — first confirmation trigger for reversal momentum.
• Open interest and funding normalization — evidence of re-leveraging after flush.
• ETF timeline and Fed commentary as catalysts for Q4 crypto flow rotation.

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