XRP is currently locked in a battle around the $2.50 mark, a level that's proving to be a significant psychological and structural pivot. On November 3, 2025, we saw XRP dip 1.2% to $2.49, facing resistance at $2.55. The token traded within a tight $0.07 range, bouncing off intraday lows of $2.49, with brief, ultimately unsuccessful, attempts to reclaim the $2.50 level.
Resistance at $2.55: A Sign of Fading Momentum?
The data points to repeated rejections at $2.55, confirming a developing lower-high formation on the daily charts. This suggests fading momentum following October's rally. We saw three failed breakout attempts at $2.54–$2.55, which were accompanied by elevated sell-side volume. Trading volume surged 85% above the recent average, reaching 50.3 million tokens during the decline. Volume concentration at those upper resistance levels further confirms active profit-taking from larger holders.
Sell orders are clearly clustered above $2.54, limiting near-term upside. The question is: are these simply profit-taking moves, or do they signal a deeper correction? What's the motivation behind these large sell orders? Are they coordinated, or are they individual holders reacting to the same technical signals?
Institutional Reaccumulation or a Short-Term Liquidity Trap?
On the other hand, the data hints at institutional reaccumulation around the $2.50 mark. This level has historically been associated with short-term liquidity traps. Declining volume in the subsequent consolidation implies early signs of accumulation, with institutional buyers potentially layering bids near the $2.49–$2.50 zone.
But let's be clear: "institutional reaccumulation" is a narrative often pushed by crypto bulls. Is there concrete on-chain data to back this up, or is it simply inferred from the price action? A sustained close below $2.49 could open downside toward $2.46, while a breakout above $2.55 would target $2.60. Traders are closely monitoring the $2.49 support level, watching for confirmation through volume alignment to determine future positioning. (Volume alignment, in this case, means a surge in buy-side volume accompanying a move above $2.55).
And this is the part of the report that I find genuinely puzzling: If institutional buyers are indeed accumulating, why isn't that buying pressure translating into a more decisive move above $2.55? Are they waiting for a specific catalyst, or are they simply content to accumulate slowly at these levels? It's worth noting stablecoin payment volumes have grown to $19.4B year-to-date in 2025. Could this growth in stablecoin usage be indirectly supporting XRP's price, providing a base level of demand?
A False Sense of Security
The $2.50 level is acting like a precarious tightrope. The tug-of-war between buyers and sellers is creating a false sense of security. A lot of traders probably think that as long as XRP holds above $2.49, everything is fine. But the repeated failures to break through $2.55 suggest underlying weakness. It's like a dam holding back water; the longer it holds, the more pressure builds.
So, Is $2.50 a Real Support or a Liquidity Trap?
My analysis suggests the recent price action is a combination of both. There is genuine institutional interest at these levels, providing some degree of support. However, the profit-taking from larger holders is creating a persistent ceiling. The market sentiment remains mixed after recent gains, making it difficult to predict the next move with certainty.
