Calm before the storm for XRP? Price Consolidates Above $2 (Ripple Price Analysis)

Ripple is currently experiencing a phase of low volatility, with its price fluctuating within the fundamental $2-$3 range. This period of consolidation suggests market indecision, with a breakout likely to define XRP’s next mid-term trend.

By Shayan

The daily chart

Ripple’s price has recently been limited to the $2-$3 range, characterized by low volatility and muted trading activity. This consolidation reflects a cautious state of the market as participants await a definitive breakout to signal the next directional move.

The cryptocurrency is currently anchored in the $2 support zone, a level bolstered by historical significance as a previous swing high and a concentration of demand. It is acting as a crucial barrier, stopping further downside moves and keeping Ripple within its consolidation range.

In addition to the bullish outlook, the RSI indicator has stabilized near 50, indicating a balance between buyers and sellers. This positioning creates a base for bullish momentum, with the potential for a break above the $3 resistance. If this materializes, Ripple could embark on a mid-term bullish trend.

Source: TradingView The 4-hour chart

In the 4-hour period, Ripple has fluctuated within a descending wedge pattern, a formation typically associated with bullish breakouts.

The price is testing the lower boundary of the wedge near the critical support zone of $2, where more buying activity is expected. This area is further strengthened by the important Fibonacci retracement levels from 0.5 ($2) to 0.618 ($1.9), underlining its importance as a robust support area.

In the medium term, the cryptocurrency is expected to maintain its consolidation within the wedge while staying above these key Fibonacci levels. A bullish break above the upper boundary of the wedge could push the price towards the $3 resistance, setting the stage for further advances.

Conversely, failure to hold the $2 support could lead to a bearish breakout, which could drive the price towards the $1.5 threshold, which represents the next critical support level.

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