XRP Recovers Amid U.S.-China Tariff Concerns and Upcoming SEC Deadline for Spot XRP ETFs

Trade Analysis on XRP Amid Global Market Volatility

XRP, the digital currency known for its rapid processing speeds and scalable technology, showed a defensive trading position on Friday but managed to maintain crucial supports. This came following an initial drop to $2.19 at the start of the trading session, however, institutional investors absorbed the selling pressure. Importantly, this occurrence coincided with heightened U.S-China tariff concerns and cautious positioning just before the forthcoming deadlines of the U.S. Securities and Exchange Commission (SEC) on spot XRP Exchange-Traded Funds (ETFs).

Essential Details on XRP Performance

Throughout the 24-hour trading session from October 17, 06:00 to October 18, 05:00, XRP fluctuated within a range of $2.19 and $2.35 – indicating a volatility range of 7%. Interestingly, trading volume surged to 246.7 million during the 07:00 hour, almost tripling the 24-hour average, as sellers gave in around the $2.23 mark. The price managed to rebound from the $2.19 low, eventually settling at $2.33. This implies a significant 1% gain from the session’s opening price. Simultaneously, the broader cryptocurrency market cap experienced a drop, falling by 6% to a total of $3.5 trillion. This drop seems to correlate with escalating macroeconomics factors and increased U.S-China trade arguments causing risk-off flows. On the regulatory front, the SEC’s examination of six pending XRP ETF filings remains ongoing until October 25. This coincides with Ripple’s planned $1 billion fundraising effort for its treasury department.

Background Context to Market Movements

The early-session downside pressure mirrored a broader weakness throughout the digital asset space as investors took precautionary steps to reduce exposure due to impending trade-related headlines and the looming ETF deadlines. Despite a significant morning downturn from $2.33 to $2.19, XRP quickly stabilized as market depth was rejuvenated through firm buying programs. Meanwhile, Ripple’s $1 billion fundraising drive for its treasury has provided a boost to investors’ confidence. Market observers have interpreted this move as a controlled rotational strategy, rather than a sign of structural frailty within its market positioning.

Summarizing the Price Action

At 07:00 UTC, XRP dropped to $2.19 on a volume of 246.7 million, establishing a key intraday support level. Bulls regained dominance during the middle of the session, resulting in a steady ascent to resistance levels of $2.33 and $2.35. The closing hour witnessed a minor dip to $2.32, which was quickly followed by a recovery to $2.33 (+1.8%), backed by a peak tick volume of 1.69 million. The subsequent consolidation between $2.32 and $2.34 established a new short-term base, demonstrating strong absorption near the previous lows.

Direction Forward: Technical Analysis

From a technical perspective, the substantial accumulation zone is located within the $2.23 to $2.25 range. Meanwhile, armed with strong support, exposure below $2.20 continues to tempt long-term investors. In contrast, resistance levels at $2.35 to $2.38 limit upside potential. Market watchers anticipate a breakout only after confirmation above $2.40. Significantly, peak liquidity surfaced at 246.7M during the selling pressure, while late-hour surges – indicated by approximately 1.7M units – signal the return of liquidity into the market. Although the Relative Strength Index (RSI) holds a neutral position, the Moving Average Convergence Divergence (MACD) appears to be stabilizing. Overall, the structure suggests a short-term consolidation within the $2.19 to $2.35 range. Accordingly, analysts suggest this indicates reaccumulation in anticipation of potential future ETF headlines.

Key Considerations for Traders

Traders are closely monitoring several critical factors. First, the ETF approval window from October 18 to October 25 and the potential market readjustment following SEC determinations. Second, the endurance of $2.30 as base support throughout the weekend trading period. Third, the continuation of Ripple’s $1 billion treasury initiative and the potential secondary-market implications. Lastly, the broader risk sentiment resulting from tariff escalation and its impact on altcoin liquidity. Finally, traders are watching for a potential technical breakout above $2.40, signaling a return to the $2.70 to $3.00 trading range, as this could indicate an uptick in XRP’s short-term performance.