In the past week, XRP has fallen below the critical $3 support level, experiencing a decline of approximately 7.02%. Currently, the altcoin is consolidating around the $2.78 to $2.79 range, refraining from retesting the newly established resistance. Recent on-chain data has prompted a cautious outlook, emphasizing a key support range that traders should closely monitor.
Crypto analyst Ali Martinez highlighted a significant price gap between $2.73 and $2.51 in a post made on September 27. This analysis derives from the UTXO Realized Price Distribution (URPD) metric, which tracks how past transactions of XRP correlate with price levels, particularly in relation to its all-time high. The URPD quantifies trading activity at various price points, illuminating potential support and resistance areas.
Martinez’s chart indicates that while there has been substantial trading across multiple price zones, the area near the current value of $2.78 shows minimal trading activity. This largely dormant price range, defined between $2.51 and $2.73, signifies a lack of market engagement, creating what he refers to as a price gap. The $2.73 level is particularly critical, as approximately 1.60 billion XRP were transacted there. A dip below this threshold could trigger a swift downturn toward the $2.51 mark, a level last seen in July, due to the scant support structure between these two price regions.
As it stands, XRP is trading at around $2.78, albeit with a minor gain of 0.78% over the last day. However, trading volume has plummeted by 58.95%, currently at $3.02 billion. CoinCodex reports that XRP is encountering a bearish sentiment, with traders exhibiting caution amid less active market conditions. The Fear and Greed Index, resting at 33, reflects fear and a lack of robust buying momentum. Over the past 30 trading days, XRP has experienced 13 days of losses, underscoring recent market weaknesses.
Despite these challenges, analysts predict little volatility in the near term, suggesting no notable shifts over the next five days or even the coming month. This indicates that XRP may continue to trade within a defined range as investors await clearer market signals or potential catalysts. In the wake of prevailing negative sentiment, short-term traders are expected to act with caution, while long-term holders remain vigilant for any changes in broader cryptocurrency market dynamics.
