XRP Drops to $2.90 Support as Bullish Crypto Bets Rack up $500M Liquidations

XRP fell nearly 4% in Tuesday’s session as institutional selling hit mid-day and forced a breakdown from the $2.99 resistance zone. A volume spike almost seven times the daily average confirmed liquidation flows, with price stabilizing only after touching $2.878 support. Traders now eye whether the $2.85–$2.87 band can hold ahead of Ripple’s banking charter review deadline.

News Background

Ripple’s push for a U.S. national banking charter has drawn scrutiny from regulators, with the Oct. 7 OCC deadline marking a key moment in the review.Global macro remains a drag: trade disputes and diverging central bank policy continue to sap FX and crypto liquidity, a headwind for enterprise-facing tokens like XRP.On Binance, custody reserves rose ~19% over the week, suggesting distribution pressure even as some whale accumulation continues on-chain.

Price Action Summary

Resistance: $2.993 confirmed as ceiling after repeated rejections on high volume.Breakdown: The heaviest decline occurred between 13:00–15:00 UTC, as volumes exploded to 586.9M and price collapsed to $2.878.Range: 24-hour span covered $0.144 (4.8%) — wider than recent sessions, underscoring fragile order books.Recovery: Final hour bounce from $2.858 to $2.881 (+0.8%) reflected short-term stabilization as algos exploited thin liquidity.

Technical Analysis

Resistance: $2.99–$3.00 remains firm ceiling.Support: $2.85–$2.87 band is key; failure opens path toward $2.70.Volume: 7x daily average on liquidation flows highlights institutional exit pressure.Trend: Lower highs under $3.00 — bearish bias until reversal signals emerge.Momentum: Small recovery late in session suggests short-term stabilization, but broader setup stays fragile.

What Traders Are Watching

Whether XRP holds $2.85–$2.87 or extends decline toward $2.70.Ripple’s OCC charter decision and its impact on U.S. regulatory positioning.Bitcoin’s $125K breakout — does it drag altcoins higher, or does XRP decouple?Whale flows after Binance reserve growth and broader on-chain distribution patterns.SEC’s October ETF decisions as potential sentiment catalyst.