XRP Holds Between $2–$2.26: Is A Breakout Or Pullback Ahead?

Key Highlights:Ripple (XRP) remains range-bound between $2.00 support and $2.26 resistance.Spot CVD shows persistent selling pressure since mid-April.Korean exchanges see over $500M in XRP net outflows since April 11.XRP traded within a defined range of $2.00 to $2.26, with key indicators displaying rising sell-side pressure. South Korean exchanges have seen over $500 Million in Ripple net outflows, as spot CVD has steadily declined since mid-April.The upcoming FOMC decision on interest rates is expected to remain unchanged. This may offer short-term clarity on macroeconomic trends.XRP Trades Within Key Resistance and Support RangeAt the time of writing, XRP traded between the key levels of $2.00 and $2.26. They are essential thresholds for its short-term trend. “A decisive close outside this range could set the tone for the next major trend,” analyst Ali said.A Fibonacci retracement chart confirms that Ripple is stuck in a descending parallel channel. Strong resistance continues to be the 0.618 retracement level at $2.2635.Recently, XRP tested this level but was unable to break above it. When writing, the price was $2.14, closer to the $2.00 support zone than the resistance.Source: XOn the other hand, technical analysis also shows XRP moving inside this downward sloping channel since February. Prices have not been able to hold above key retracement levels such as 0.5 at $2.4316 and 0.382 at $2.6122.A move below $2.00 could see Ripple drop further to $1.7949 or $1.5216, lower Fibonacci levels. Moreover, the TD Sequential indicator has printed a sell signal on the 3-day XRP/USDT chart.This tool usually indicates a potential reversal or pause in the trend. After the signal, XRP fell 3.91% on May 6 to $2.1006, indicating sellers may be retaking control.Source: XThe candlestick pattern is also a strong bearish candle with a long upper wick. The market showed signs of weakening after a brief phase of sideways movement and fading bullish momentum.This increases the likelihood of a potential retracement. However, the bearish momentum could increase if XRP cannot maintain above $2.00 in the following sessions.Spot Volume Shows Net Selling PressureAnother important indicator is the Spot Cumulative Volume Delta (CVD), the net difference between buy and sell volume. In the XRP spot CVD chart, we see a drop since mid-April. As of May 6, it indicates a drop from near zero to below -220 million.XRP spot cumulative volume delta | Source: XIt shows sellers have been more aggressive than buyers. The CVD slope has been primarily negative, and selling pressure has been steady. XRP, meanwhile, has been moving from highs above $2.30 to current levels near $2.10 during the same period.The sharp decline in the CVD indicates that while price hasn’t collapsed, buying strength is waning and sellers are in control. If this continues, XRP could retest the $2.00 support.Korean Market Turns Bearish While Macro Factors Stay NeutralSince April 11, more than 220 million XRP, or over $500 Million, have been sold on the South Korean exchange Upbit. Korean traders look to have flipped to bearish, as this data suggests heavy selling.One of the largest regional sell-offs in recent months is this net outflow. This may have been a factor in XRP’s inability to recapture and maintain prices above $2.26. This shift in behaviour is significant because Korea has been XRP’s central trading hub for a long time.Source: XAt the same time, macroeconomic uncertainty is stabilizing. Polymarket prediction data shows a 98% chance the U.S. Federal Reserve will leave rates unchanged at its May 7 meeting. Increases are seen as unlikely, and only 2% expect a rate cut of 25 basis points.Stable interest rates often contribute to lower volatility in crypto markets. However, bearish XRP indicators suggest that traders remain cautious and uncertain about price movements. Unless the Fed surprises markets, its decision might not have an immediate effect.DisclaimerThis article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.godfrey mwirigiThe post XRP Holds Between $2–$2.26: Is A Breakout Or Pullback Ahead? appeared first on The Market Periodical.