Why XRP price is falling after $2.40 rally
XRP price has turned lower after rejecting a high-confluence resistance zone, confirming a corrective phase as price accepts back below key volume levels.
- XRP was rejected at the 0.618 Fibonacci in confluence with the Point of Control
- Acceptance below the POC signals weak bullish conviction
- Downside focus shifts to the value area low and $1.79 support
XRP’s (XRP) pullback following its rally toward the $2.40 region has sparked renewed debate about whether the upside move has failed or whether the decline is simply corrective.
From a technical perspective, the rejection seen at recent highs is neither sudden nor unexpected. Instead, it reflects a calculated response to a major resistance area defined by volume, Fibonacci levels, and broader market structure.
The rally into $2.40 brought XRP directly into a zone where sellers have previously shown interest. As price failed to hold above this region on a closing basis, the market signaled that bullish momentum was weakening.
XRP price key technical points
- XRP was rejected at the 0.618 Fibonacci retracement, a key technical reversal level
- The rejection aligned with the Point of Control, the highest volume node of the broader range
- Acceptance below the Point of Control shifts focus toward the value area low and $1.79 support
The rejection from $2.40 occurred precisely at the 0.618 Fibonacci retracement, a level that frequently acts as a decision point between continuation and reversal. This Fibonacci level was reinforced by the Point of Control of XRP’s trading range, creating a high-confluence resistance zone where supply was expected to emerge.
Price reacted sharply from this area, producing a decisive rejection rather than a gradual consolidation. Such behavior typically indicates active selling pressure rather than passive profit-taking. The inability to maintain acceptance above the Point of Control confirms that buyers lacked the conviction required to extend the rally further.
Volume behaviour adds further clarity to the rejection. While XRP moved higher into resistance on relatively muted volume, selling pressure increased on the move lower. This imbalance highlights weak demand at higher prices and suggests that the rally was vulnerable once it reached a zone of heavy historical participation.
Following the rejection, XRP has now fallen back below the Point of Control. From a market profile perspective, this is a critical development. Acceptance below the upper bound of the range often leads to rotational behaviour, in which price moves to lower levels to rebalance supply and demand.
The next important technical level is the value area low, which represents the lower boundary of fair value within the current range. If this level holds, XRP may stabilize and continue ranging. However, a failure to defend the value area low would increase the probability of a deeper corrective move.
In such a scenario, the $1.79 region becomes the next major downside target. This level aligns with prior structural support and represents a natural area where buyers may attempt to re-enter. A rotation toward this zone would complete a traversal of the range and reset market conditions after the failed breakout attempt.
What to expect in the coming price action
As long as XRP remains below the Point of Control and continues to face resistance near $2.40, downside probing remains the higher-probability outcome in the short term. The immediate focus will be on whether price can find support at the value area low or if acceptance develops below it.
A sustained break below the value area low would open the door for a deeper corrective move toward $1.79, where stronger demand is expected to emerge. Conversely, a successful defense of lower support could keep XRP trading range-bound, allowing price to rotate higher once selling pressure is absorbed.
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