XRP traded in a range on Monday, rising 2.75% to $2.34 while underperforming the broader crypto market due to muted participation. The move reflected cautious accumulation rather than broad conviction as trading volume remained below trend despite several volatility spikes during the session.
News background
- XRP rose 2.75% to $2.34 during the 24-hour period, but lagged the CD5 index by approx. 2.5%, which highlights divergent sector performance.
- Volume fell 6% below its seven-day average, with 24-hour turnover signaling only mild institutional engagement.
- The session opened with strength before encountering steep turns. Prices fell from $2.51 to $2.35 before making a late recovery to $2.34.
- The sharp intraday collapse triggered 420.8 million in volume – about 400% above average – confirming firm resistance at $2.44 and defining $2.33 as the new support base.
- The last hour saw a modest rise of 1.4% to $2,353 as traders moved into the close.
Summary of price action
- The market structure showed range compression as XRP oscillated within a $0.20 corridor, reflecting a tightening of 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.
- Ripple Prime’s US launch and continued ETF speculation provided macro support, but price action continued to respect the descending triangle pattern that dominated higher timeframes.
- The token’s long-term holders increased daily spending by 580% to $260m, signaling ongoing profit realization despite steady inflows.
Technical Analysis
- XRP is trading within a consolidation range bounded by $2.30-$2.35 support and $2.60-$2.72 resistance.
- The $2.54 pivot zone remains crucial for directional bias. The descending triangle pattern connecting lower highs from the $3.15 peak continues to suppress breakout momentum, while EMA band compression suggests an impending volatility event.
- Volume analysis shows declining participation during rebounds after large sell-offs – a classic bearish divergence setup.
- Unless XRP can sustain trading above $2.54, technical momentum favors continued consolidation with potential downside towards $2.25-$2.02.
What traders should know
- Traders are looking at the $2.54 resistance zone as the technical inflection point for breakout confirmation.
- Sustained closes above this level could reverse momentum and target $2.80-$3.00. Conversely, failure to sustain support at $2.30 risks a renewed downside towards the $2.20 range.
- Despite muted participation, XRP’s compression setup offers asymmetric risk for directional traders seeking pre-breakout positioning.
- Market volatility remains high, with option-implied ranges widening for contracts expiring in November – a sign that the market expects a decisive move within days.
