Digital Asset Tests $2.12 Support Level as Trading Volumes Decline

• XRP is trading at around $2.17, down 1.2% over 24 hours and 6% over the past week
• The cryptocurrency broke below the mid-range level of $2.27 and is testing early May lows around $2.05-$2.08
• Technical indicators show bearish momentum with capital outflows and decreasing trading volumes
• Despite short-term bearish signals, institutional interest is growing with new offerings from Coinbase and Ault Capital Group
• Price is consolidating between $2.11 and $2.35, with crucial support at $2.12 and resistance at $2.34

XRP has been facing downward pressure over recent days, breaking below important support levels and testing lows from early May. After failing to maintain positions above $2.30, the sixth-largest cryptocurrency by market capitalization is now trading at approximately $2.17.

The digital asset attempted a recovery in April after reclaiming a descending trendline resistance. However, recent price action suggests that XRP is forming a range rather than staging a bullish recovery.

The cryptocurrency faced rejection at $2.60 in mid-May, which coincides with its March highs. Since then, selling pressure has intensified, pushing the price below the mid-range level of $2.27.

At current prices, XRP is showing signs of consolidation just above the critical support zone between $2.05 and $2.12. This area represents the lows from early May and could be a decisive level for the tokens next directional move.

XRP Price on CoinGeckoMarket Conditions Show Declining Activity

Trading volumes for XRP have decreased substantially. Spot market activity fell by 37% to $1.51 billion over the past 24 hours compared to the previous day.

The derivatives market mirrors this trend. According to Coinglass data, XRP futures volume dropped nearly 38% to $2.97 billion, while open interest declined 3.39% to $3.90 billion.

Technical indicators paint a bearish picture in the short term. The Chaikin Money Flow (CMF) stands at -0.07, indicating significant capital outflows from the market.

The Directional Movement Index (DMI) confirms that a bearish trend is developing. Meanwhile, the On-Balance Volume (OBV) continues to slide lower, suggesting that selling volume is exceeding buying volume.

The Relative Strength Index (RSI) is approaching oversold territory at 40.82 but hasnt yet signaled a reversal. Moving averages across most timeframes are flashing sell signals, except for the 200-day estimated moving average, which remains supportive.

Liquidation heatmaps reveal that sizeable magnetic zones have been swept up in recent days, with one remaining cluster of liquidity in the $2.05 region. This suggests that this zone may be revisited if selling pressure persists.

Institutional Interest Grows Despite Price Decline

While short-term price action remains bearish, institutional developments paint a more optimistic picture for XRPs longer-term prospects.

Open Interest in XRP climbed to nearly $5 billion as the SEC formally initiated a review of the WisdomTree XRP Trust. Though this review doesnt confirm approval, it indicates the SEC is giving serious consideration to XRP-related financial products.

Coinbase Institutional announced it will launch 24/7 trading access to XRP futures for U.S. investors starting June 13. This follows the companys April introduction of CFTC-regulated XRP futures through Coinbase Derivatives.

Starting June 13, were enabling 24×7 trading for $XRP and Solana ( $SOL ) futures, unlocking real-time access to U.S. traders, reflecting the always-on nature of crypto markets.

Another significant development comes from Ault Capital Group, a subsidiary of publicly traded Hyperscale Data. The firm announced plans to roll out an institutional XRP lending platform in Q3, aimed at companies listed on the New York Stock Exchange and Nasdaq.

The platform will provide futures-hedged, asset-backed loans, with all contracts tracked on-chain through the XRP Ledger. Ault Capital Group plans to purchase up to $10 million worth of XRP to support this initiative.

For traders and investors watching XRP, the immediate support level sits at $2.12. A breakdown below this level could lead to a test of the psychologically important $2.00 mark.

On the upside, the first resistance level is at the 20-day simple moving average around $2.34, followed by the upper Bollinger Band at $2.56. Bulls would need to reclaim these levels to regain control of the trend.

The cryptocurrency is currently trading below the 100-hourly Simple Moving Average, with a bearish trend line forming at around $2.22.

Market participants should watch for price reactions at the $2.05-$2.12 support zone, as this area could determine whether XRP continues its downward trajectory or stages a recovery in the coming days.