XRP price remained compressed between defined boundaries, trading near the upper edge of its range.
While it displayed strong support on the lower side, derivatives activity pointed to continued volatility in the background.
XRP Price Stayed Limited by Resistance and Support
The XRP price was near $2.80 at press time. Resistance stood near $2.90, while support held close to $2.80.
Market data showed that both levels shaped short-term activity. Repeated attempts to climb above resistance failed.
Each rejection confirmed the level as a cap on upward moves. Analysts said the barrier created a ceiling that prevented a larger advance.
Support near $2.80 acted as a floor. Buyers entered each time the price approached this zone.
That behavior prevented deeper pullbacks and set a clear trading band. Analysts described the range as important for sentiment.
As per their observation, repeated testing of both edges kept traders focused on a potential breakout. Until either side broke, the XRP price remained in a tight corridor.
Derivatives Showed Bias Despite Setbacks
Data from liquidation charts revealed how leveraged traders shaped volatility. When the XRP price briefly moved above $3.00 earlier in the summer, long positions were heavily liquidated.
Losses for those traders suggested that over-leveraged positions struggled to withstand pullbacks. Despite these events, the broader liquidation trend leaned toward long exposure.
Since mid-July, green bars representing long liquidations dominated chart activity. Short liquidations also occurred but were smaller. This imbalance signaled stronger interest in bullish positions according to analysts.
Spikes of red liquidations appeared during late July and early August. These episodes marked sudden downward moves that forced out long positions.
The correlation between liquidation flows and sharp price changes showed that derivatives amplified volatility even when spot moves were modest.
Market analysts said such behavior often indicated that leverage was concentrated on one side.
They added that when liquidations occurred in clusters, it increased the speed and depth of short-term moves.
Outlook Focused on Narrow Trading Zone
Analysts projected a longer-term target for the XRP price near $5.40, but that view contrasted with the restricted near-term pattern.
At press time, the token continued to trade inside its well-defined corridor. Support near $2.80 aligned with recent stabilization points on the chart.
Resistance around $2.90 remained firm despite repeated tests. Together, these levels kept activity compressed and limited daily moves.
Observers said the narrow channel meant that the next decisive move could carry more weight. If the XRP price broke resistance, derivatives data suggested that long positioning could fuel further gains.
If support failed, prior liquidation spikes showed the risk of sharp declines. Traders were watching these boundaries closely as per analyst observations.
They noted the balance between strong support and stubborn resistance left XRP in a holding pattern. The interaction between spot prices and derivatives positions continued to define volatility.