Key Takeaways:
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XRP is consolidating near the $2.75 support level but risks an 8-10 percent decline to as low as $2.50.
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Onchain Unrealized Price Distribution (URPD) indicates significant buyer presence between $2.45 and $2.55.
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Liquidity compression and pending ETF decisions suggest volatility and possible price expansion ahead.
XRP’s price action currently struggles at a crucial juncture, forming a descending triangle, a pattern often signaling bearish outcomes. The cryptocurrency hovers near $2.75, but persistent selling may push the price lower to between $2.65 and $2.45.
This potential 8-10 percent dip aligns with a daily fair value gap and overlaps key Fibonacci retracement levels (0.50–0.618), creating a liquidity zone that could attract buyers and set the stage for a rebound.
Analysis of Glassnode’s URPD data reveals a dense cluster of XRP holders with cost basis around $2.45 to $2.55. If the price falls to this range, it is likely buyers will step in to defend the level, supporting a potential recovery.
Historically, XRP has followed fractal patterns reminiscent of its Q1 movements. Having already tested $2.65 twice, there is reason to anticipate a possible sweep below this level before a sustainable rally occurs.
The current market shows weakness heading into the weekend, with forecasts suggesting a dip to near $2.50 could happen early next week. However, strong resistance above $2.90 might invalidate the bearish outlook if surpassed decisively.
Liquidity Compression and ETF Catalysts Signal Upcoming Volatility
Market researchers like Sistine Research highlight that XRP is experiencing its tightest compression phase since the US elections in late 2024. This narrowing price action compresses the order book and generates wider gaps between liquidity levels, typically preceding sharp breakouts.
Crypto analyst Pelin Ay notes ongoing buyer-seller battles in the spot market, with sellers maintaining control despite brief buyer strength earlier this year. Sustained upward momentum will depend on a decisive volume shift favoring buyers, which remains elusive.
Additionally, significant ETF decisions are on the horizon. The SEC has delayed ruling on Franklin Templeton’s XRP ETF to November 14, while the XRPR exchange-traded product launched with notable first-day volume of nearly $38 million. Caution is advised, as market optimism might already be priced in, raising the risk of a “sell the news” reaction.
This dynamic suggests a period of increased volatility for XRP, with investors advised to monitor price action closely for triggers of either a breakdown or a bullish rebound.
This article does not constitute investment advice. Crypto trading carries risk, and readers should independently evaluate all decisions.
