After a strong growth streak in early August, XRP's bullish momentum has begun to wane. Since last Friday, trading activity of this token has noticeably cooled down, with prices moving sideways in a narrow range and market volatility weakening. This raises concerns that sellers may soon take control.
Price Stuck in a Narrow Range
Observing the XRP/USD daily chart shows that in the last three trading sessions, the price of XRP has fluctuated between $3.22 (support) and $3.30 (resistance).
This is an accumulation phase following a 20% increase over four days (August 3-7). The sideways movement reflects a state of 'temporary balance' between buyers and sellers, as the market awaits a trigger factor to determine the next direction.
Decreasing Volatility – Signs of a Storm Before It Hits
The Average True Range (ATR) indicator – a measure of price volatility – has decreased by 10% since August 7. A declining ATR indicates that the market is calm, but history shows that low volatility periods often serve as 'compression points' before the price explodes strongly in a certain direction.
Elder-Ray Index Signals Weakening of Buyers
On the daily chart, the Elder-Ray Index still records a green histogram (indicating buyer strength), but these histogram bars are getting smaller. This means that buying power is gradually losing its advantage, creating space for sellers to take advantage and apply downward price pressure.
Price Scenario – Decision Zone $3.22 to $3.66
Bearish scenario: If selling pressure is strong enough to break the support level of $3.22, XRP could slide deep into the $2.99 region.
Bullish scenario: If trading demand returns and breaks the resistance level of $3.33, the price could extend the uptrend to $3.66.
Conclusion: The XRP market is in a 'compression' phase with low volatility. Investors need to pay special attention to the levels of $3.22 and $3.33, as these will be the triggers for a new trend – either a strong correction or a new breakout.