XRP rose 2,75% to $2,34 on Monday, though it underperformed the broader crypto market amid subdued trading activity. This price move reflected cautious accumulation rather than broad-based confidence, as trading volumes remained below average despite multiple volatility spikes during the session.
XRP’s 2,75% surge to $2,34 within 24 hours marks a notable divergence, underperforming the CD5 index by around 2,5%. This signals a performance divide within the sector. Trading volumes were 6% below their seven-day average, suggesting limited institutional investor involvement. The session started strong, but after a sharp rebound, the price dropped from $2,51 to $2,35 before recovering to $2,34.
This sudden intraday pullback led to a trading volume of 420,8 million, roughly 400% above average, confirming the strong resistance at $2,44 and establishing $2,33 as an emerging support base. The final hour of the session saw a modest 1,4% increase to $2,353 as traders repositioned for the close.
The market structure showed a range compression, with XRP oscillating within a corridor of $0,20. This reflects a decrease in volatility ahead of a potential breakout. Institutional capital flows were selective, showing a preference for Bitcoin en Solana, with XRP’s relative strength index in neutral territory. Despite the recent launch of Ripple Prime in the US and ongoing speculation around ETFs providing macro support, price action still followed the descending triangle pattern that dominates higher timeframes.
The token's long-term holders increased their daily spending by 580% to $260 million, indicating continued profit taking while there is stability in inflows.
On a technical level, XRP is moving within a consolidation range, bounded by support levels at $2,30 to $2,35 and resistance at $2,60 to $2,72. The $2,54 pivot zone remains crucial for the directional bias. The descending triangle pattern connecting lower highs from the $3,15 peak continues to suppress the upside momentum, while the EMA ribbon compression signals a possible impending volatility. Volume analysis shows that the number of participants decreases during rebounds after high-volume sell-offs, pointing to a classic bearish divergence.
Without XRP being able to continue trading above $2,54, technical momentum favors a continuation of consolidation with a potential downward move towards $2,25 to $2,02.
For traders, the $2,54 resistance level is a crucial point for confirming a breakout. Sustained closes above this level could turn the momentum around, with targets reaching $2,80 to $3,00. Conversely, if the support at $2,30 fails to hold, there are risks of a fresh downward move towards the $2,20 range. Despite limited participation, XRP compression presents asymmetric risk for directional traders looking to position for a breakout.
Market conditions remain volatile, with options implied ranges widening for contracts expiring in November. This indicates the market expects significant movements within a few days.
What factors are currently influencing XRP's price development?
XRP’s price is influenced by several factors, including macroeconomic conditions, institutional involvement, and technical patterns that affect trade categorization. Recent profit-taking by long-term holders also suggests that profit realization could factor into price action.
What does technical analysis say about XRP's short-term outlook?
Technically, XRP seems to be in a consolidation phase with key levels around $2,54 for a potential break. A failure to hold this support could lead to a drop to lower levels such as $2,25 while a break above $2,54 could pave the way to higher targets.
How does XRP compare to other cryptocurrencies, like Bitcoin and Solana?
XRP differs from Bitcoin and Solana in terms of ethos and market dynamics. While Bitcoin and Solana are currently attracting stronger inflows from institutional investors, XRP’s relative strength index remains neutral, suggesting it is more difficult to build momentum compared to these other assets.