XRP drops 6 percent, hovers around the support of 2.33 as the triangle structure narrows. Monitor breakout or breakdown at 2.54.
XRP has fallen by 6 percent in the recent past, and this tightens the triangle pattern, which preconditions a major break or breakdown.
The token traded at a high of about 2.33 and failed in its attempt to break resistance at 2.44. The traders are paying keen attention to the pivot of 2.54 as a clear marker of a possible direction change.
In recent sessions, XRP has performed poorly in the broad crypto market, even though it has increased by 2.75 percent to reach a high of 2.34, with its trading volumes still below average.
There was a huge volatility spike in the intraday, leading to a swift decline between $2.51 and 2.35, followed by a slight recovery. This movement validates high resistance at $2.44 and an emerging support zone at about $2.33.
Market Compression Signals Volatility Ahead
XRP’s price has been trading within a narrow range below $0.20, signaling market compression and hinting at a likely volatility event ahead. The token is currently trading within the support range between 2.30 and 2.35 and having resistance between 2.60 and 2.72.
The decreasing triangle pattern created with the help of lower highs at approximately 3.15 is still in the process of having an upward momentum. This indicates bearish divergence.
The trading volumes show decreasing activity in the event of rebounds in prices following high volume selloffs factor that favors further downward movements.
Until XRP manages to maintain growth beyond the resistance point at 2.54, the trend is toward additional consolidation. It may also decline to 2.25 or 2.02.
Traders’ Key Watch: $2.54 Resistance Zone.
The market players are interested in the price level of 2.54. It would grant market players confirmation that there is a rebound. A series of continuous highs above this point may lead to a bullish trend. Its target would be gains as high as $2.80 to $3.00.
Any further loss of support around 2.30 will be the trigger for a new selling wave. The area can fall to 2.20. Although participation remains limited, the compression pattern’s asymmetrical risk offers opportunities to traders anticipating a breakout.
The volatility in the market is high as the options-implied ranges of November contracts continue to expand, meaning that clear price actions are likely to be observed in the near future.