XRP Drops 6%, Hovers Around Key Support as Triangle Pattern Narrows
XRP has recently fallen by 6%, tightening its triangle pattern and setting the stage for a significant breakout or breakdown. The token traded at a high of approximately $2.33 but failed to break through the resistance level at $2.44. Traders are closely monitoring the critical pivot point at $2.54, which could signal a potential change in trend direction.
In recent sessions, XRP’s performance has lagged behind the broader crypto market, despite a modest 2.75% increase to a high of $2.34. Trading volumes remain below average, contributing to a lackluster momentum. Intraday price action was marked by heightened volatility, with a sharp decline from around $2.51 down to $2.35, followed by a slight recovery. This movement reinforces the presence of strong resistance at $2.44 and an emerging support zone near $2.33.
Market Compression Signals Volatility Ahead
XRP’s price has been confined within a narrow range below $0.20—a sign of market compression that often precedes a volatility event. Currently, the token is trading between support levels of $2.30 and $2.35, while facing resistance in the $2.60 to $2.72 range. A descending triangle pattern, characterized by lower highs near $3.15, is developing but still lacks upward momentum, indicating bearish divergence.
Additionally, trading volumes have been declining during price rebounds that follow high-volume sell-offs, which suggests the potential for further downward movement. Until XRP can decisively break above the resistance at $2.54, the prevailing trend is likely to continue consolidating. Should a breakdown occur, prices may slide further to $2.25 or even $2.02.
Traders’ Key Watch: The $2.54 Resistance Zone
The $2.54 level remains critical. Any loss of support around $2.30 could trigger a fresh wave of selling, potentially pushing the price down to $2.20. While overall market participation remains limited, the asymmetrical risk presented by the compression pattern offers traders opportunities to capitalize on an anticipated breakout.
Market volatility remains elevated, as reflected by the expanding options-implied ranges for November contracts. This expansion points to the likelihood of clear and significant price actions in the near term. Traders are advised to stay alert and monitor XRP closely for any decisive moves around these key levels.
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