XRP traded range-bound on Monday, gaining 2.75% to $2.34, while underperforming the broader crypto market amid moderate participation. The move reflects cautious accumulation rather than broad conviction, as trading volumes remained below trend despite multiple spikes in volatility during the session.
News context
- XRP climbed 2.75% to $2.34 over a 24-hour period, but lagged the CD5 index by around 2.5%, highlighting divergent sector performance.
- Volume fell 6% below the seven-day average, with 24-hour turnover signaling only slight institutional engagement.
- The session opened strongly before encountering sudden twists and turns. Prices fell from $2.51 to $2.35 before seeing a late recovery to $2.34.
- The strong intraday breakout triggered volume of 420.8 million, approximately 400% above average, confirming firm resistance at $2.44 and setting $2.33 as the emerging support base.
- The final hour saw a modest 1.4% rise to $2.353 as traders repositioned towards the close.
Price Action Summary
- Market structure showed range compression as XRP oscillated within a $0.20 corridor, reflecting tightening volatility ahead of a potential breakout.
- Institutional rotation remained selective, with capital flows favoring Bitcoin and Solana while XRP’s Relative Strength Index hovered in neutral territory.
- The launch of Ripple Prime in the United States and continued ETF speculation provided macroeconomic support, but price action continued to adhere to the descending triangle pattern dominating the higher timeframes.
- Long-term holders of the token increased their daily spending by 580% to $260 million, signaling continued profit-making despite stable inflows.
Technical analysis
- XRP is trading within a consolidation range bounded by support at $2.30 to $2.35 and resistance at $2.60 to $2.72.
- The pivot zone of $2.54 remains decisive for the directional bias. The descending triangle pattern connecting lower highs from the $3.15 high continues to suppress breakout momentum, while the compressing EMA ribbon suggests an impending volatility event.
- Volume analysis shows declining participation during rallies following sell-offs – a classic bearish divergence setup.
- Unless XRP can sustain trading above $2.54, technical momentum favors continued consolidation with downside potential between $2.25 and $2.02.
What Traders Should Know
- Traders are watching the $2.54 resistance zone as a technical inflection point for breakout confirmation.
- Sustained closes above this level could reverse momentum, aiming for a target of $2.80 to $3.00. Conversely, failure to hold the $2.30 support risks causing a further decline towards the $2.20 range.
- Despite moderate participation, XRP’s squeeze pattern offers asymmetric risk to directional traders seeking positioning ahead of the breakout.
- Market volatility remains high, with implied option spreads widening for contracts expiring in November – a sign that the market is expecting a decisive move within days.
