Ripple’s token, XRP, appears to be experiencing a phase of muted trading marked by indecision in the market. This stagnation is reflected in its price action, which has been caught between clearly established supply and demand zones, leaving traders awaiting a new catalyst to dictate the next move.
On the daily chart, XRP is currently consolidating within a range spanning from a support level of $2.7 to a resistance zone between $3.4 and $3.5. Following a significant rally in July, the momentum has waned, as the upward advances have faced repeated resistance from overhead supply zones. The 100-day and 200-day moving averages are positioned below the current trading levels, which add a layer of dynamic support at the $2.7 decision point. This level has become crucial; if buyers manage to hold it, XRP has the potential to revisit the upper boundary of its range. However, a definitive break below this level could lead to a more substantial retracement.
Shifting focus to the 4-hour chart, a descending wedge formation is evident, highlighting a short-term downward trend for XRP. The price has consistently faced resistance near the upper boundary of the wedge while finding demand near the lower boundary close to $2.7. This has resulted in a compression zone with liquidity accumulating on both sides. If XRP manages to break out above the wedge resistance, it could drive the price toward the $3.1 mark and subsequently test the resistance at $3.4. Conversely, a failure to maintain the $2.7 support could trigger a decline toward $2.4, where the next major demand zone is located.
Until a breakout occurs, Ripple is expected to remain in its current consolidation phase, with growing volatility anticipated as traders position themselves for the forthcoming movement in the asset.
