This move was not caused by bad news. It came from short term traders taking profit after a strong rise earlier this month.
The market showed selling pressure when price moved close to 2.13. Each time XRP tried to move above this level sellers stepped in. This kept price under control and pushed it lower during the day.
At the same time long term demand remains stable. Big buyers are still active in the background. XRP funds continue to see steady inflows. There have been no days with net outflows so far. This shows that interest from large players has not faded.
Another positive point is the drop in XRP held on exchanges. The total supply on trading platforms has fallen a lot compared to late last year. Fewer tokens on exchanges often mean less pressure to sell quickly. This supports price over the medium term even if short term moves stay weak.
Ripple also made progress on the regulation side. The company received early approval for an e money license in Luxembourg. This step allows Ripple to expand payment services across Europe. The company is also working under the new EU rules for digital assets. This gives more confidence to banks and firms that want to use XRP related services.
Even with these positive signs price action is being driven by short term traders. XRP had rallied from near 1.80 earlier in the month. After such a move some pullback is normal. Traders are using rallies to lock in gains rather than chase price higher.
During the last day XRP moved from around 2.15 down to near 2.07. Trading activity increased when price was rejected near resistance. Later in the session selling pushed price briefly below 2.06. Buyers stepped in quickly and price bounced back slightly.
This bounce reduced fear but did not change the short term structure. Price is still below the main resistance zone. As long as XRP stays under 2.13 upside moves may struggle.
Right now the market is in a cooling phase. This is not a trend change. It is more like a pause after a strong move. Long term holders appear calm while short term traders control daily swings.
The key levels are clear. Support sits near the 2.05 area. If this zone holds XRP can move sideways and try again for higher levels. If support fails price could slide toward 2.00 where buyers may defend more strongly.
On the upside a strong break above 2.13 with good volume is needed. That would open the door for a move toward higher targets in the weeks ahead.
For now XRP is taking a breath. Big money interest remains in place. Short term traders are active. This mix often leads to range trading before the next big move begins.