XRP Price Alert: Korean Sell Pressure Dominates as $2 Looms

Key Points

• XRP is currently experiencing significant sell pressure, with a notable 84% originating from Korean exchanges, particularly Upbit.
• The cryptocurrency has recently touched its 12-month rolling Volume Weighted Average Price (rVWAP), a critical support level.
• Analysts warn that failure to hold the 12-month rVWAP could see XRP retesting the psychologically important $2 mark.
• To exit the immediate danger zone, XRP needs to regain the $2.50 level.
• Further downside targets, potentially reaching $1.80-$1.70, are anticipated if the $2 support fails to hold.

Understanding XRP's Current Market Dynamics

The digital asset XRP has recently been under considerable scrutiny following a notable downswing in its market value. This price correction has brought XRP into a confluence of critical long-term volume and mean-reversion metrics, prompting prominent market analysts to pinpoint the sources of this selling pressure. A deep dive into the recent market movements reveals a fascinating, albeit concerning, trend: a significant portion of the selling activity is emanating from the South Korean market, a region historically known for its high trading volumes and influence on cryptocurrency prices.

XRP Faces Crucial Technical Support Levels

Market technician Dom (@traderview2) has highlighted XRP's current predicament, noting that the asset has "reached the 12M rVWAP for the first time this year." This 12-month rolling Volume Weighted Average Price represents a crucial barometer for long-term market sentiment and fair value. Trading below this level is generally considered a bearish signal, indicating a potential shift from trending to mean-reverting phases. Dom's analysis underscores the gravity of the situation, cautioning that a sustained breach below this rVWAP could pave the way for a retest of the significant $2 support level, often viewed as a psychological floor for the asset. Conversely, a robust recovery would necessitate XRP reclaiming the $2.50 mark to mitigate immediate downside risks.

Order Book Dynamics and Potential Downside

Further examination of market mechanics reveals that spot order books are currently skewed towards bids, which conventionally suggests underlying buying interest. However, Dom tempers this optimism by noting that "snapping the local low will likely send us back to $2 where the rest of the bids sit." This suggests that while there is demand, it is concentrated at lower price points, implying that a minor dip could trigger a cascade towards deeper support zones as existing bids get filled. This dynamic highlights the fragility of the current market structure and the potential for rapid price movements.

The Predominant Role of Korean Exchanges in XRP Sell Pressure

Perhaps the most striking revelation from recent market analysis is the disproportionate influence of Korean exchanges on XRP's current sell-off. Dom explicitly stated, "They do NOT look happy over there in Korean… 84% of all the spot sell pressure over the last 2 days has came from Upbit." This assertion is corroborated by a detailed breakdown of Cumulative Volume Delta (CVD) across various exchanges. The CVD chart starkly illustrates Upbit's deeply negative line, contrasting sharply with the relatively flat lines of other major exchanges such as Binance, Coinbase, Bybit, OKX, Kraken, and Bitstamp. This data unequivocally points to the Korean Won (KRW) trading corridor as the primary source of real-coin distribution, suggesting that a localized selling spree is dictating much of XRP's near-term price action.

Implications of Concentrated Selling Pressure

The concentration of selling pressure from a single geographical region and exchange carries significant implications. It suggests that the broader market sentiment across other major trading venues might be less bearish, but the sheer volume from Upbit is overriding these more balanced dynamics. Understanding such regional influences is crucial for traders and investors, as it provides insight into specific market catalysts that might not be immediately apparent from aggregate global data. The localized nature of this selling could, for instance, be driven by specific regulatory news, macroeconomic factors within Korea, or even unique market psychology prevalent among Korean traders.

Future Price Projections and Key Support Zones

Looking ahead, another prominent analyst, IncomeSharks, offers a high-timeframe perspective, framing the downside magnet with stark clarity. Their daily XRP/USD chart identifies a broad demand zone just below the $2.00 mark, articulating the sentiment: "XRP — If you missed it under $2 you’ll probably have a chance to bid it again." This perspective suggests that the current retracement could offer a second opportunity for investors to accumulate XRP at lower valuations. The chart further illustrates how a previous late-summer impulse failed to breach overhead resistance, leading to a series of lower highs and creating a clear "air pocket" towards the December–March value area, which begins around the critical $2.00 price point. IncomeSharks further projects a potential retracement to as low as $1.80-$1.70 if the psychological $2 mark fails to provide adequate support, emphasizing the importance of this level for XRP's near-term trajectory.

Conclusion

XRP is at a pivotal juncture, navigating significant sell pressure predominantly stemming from the Korean market. The convergence of its price with the 12-month rVWAP, coupled with analyst warnings regarding the $2 support level, underscores the critical period for the asset. While order books show some underlying bids, the localized nature of the selling pressure from Upbit indicates a concentrated force driving the downswing. Investors and traders will be closely watching these key technical levels, particularly the $2.50 resistance for recovery and the $2 support for a potential deeper correction towards $1.80-$1.70. As XRP currently trades at $2.21, the coming days will be crucial in determining whether bulls can defend these critical thresholds or if further downside exploration is inevitable.