XRP Setup Tightens Ahead of ETF Decisions, and $2.40 Break Could Define Next Leg

XRP trades narrowly after a volatile stretch, holding above short-term support as market participants weigh renewed risk exposure. Strategists warn a deeper pullback toward $1.55 remains plausible before a structural recovery attempt toward the $7–$27 corridor.

News Background

• The token steadied through Thursday’s Asia–U.S. crossover, consolidating between $2.34–$2.39 after a sharp rally earlier in the week.
• The midday surge to $2.39 on October 18 drew 42.23 million in volume — nearly double the 24-hour mean — before fading into a tight band near $2.35.
• Market sentiment remains cautious amid $19 billion in cross-crypto liquidations triggered by escalating trade tensions.
• Ripple’s proposed $1 billion capital raise and the SEC’s ongoing review of six spot XRP ETF filings continue to shape positioning. Institutional desks report lighter leverage exposure and rotation into cash collateral as traders prepare for policy headlines and macro catalysts.

Price Action Summary

• XRP moved in a compact 2% range across the October 18–19 session, carving a floor near $2.34. Bulls briefly retested the $2.39 ceiling before sellers reloaded.
• Volume thinned through the back half of the day — a classic pre-break compression.
• The final hour (07:10–08:09 UTC) saw XRP rebound from $2.34 to $2.35 on 590K in turnover, suggesting the earlier fade may have been a false break rather than a clean trend reversal.

Technical Analysis

• Price structure remains neutral-to-bullish while XRP trades above $2.34 support. Intraday action shows an accumulation pocket forming within the $2.34–$2.35 band, with clear resistance anchored near $2.39.
• Momentum models show declining volatility and RSI resetting after prior overextension.
• A decisive break above $2.39 reopens $2.47, while failure to hold $2.34 exposes the $2.28–$2.31 cluster. Longer-term technicians flag a potential 40% correction toward $1.55 if broader risk-off sentiment intensifies — a move that could set the stage for the next cyclical advance.

What Traders Are Watching

• Desks are watching ETF headlines into October 25 as potential volatility triggers. A reclaim of $2.40 with volume confirmation could ignite the next wave toward $2.65.
• Macro traders remain wary of U.S.–China tariff developments and Fed language around liquidity — both viewed as catalysts for the next impulse move.