Momentum Fades After Early August Rally
Following a sharp 20% rise between August 3–7, $XRP ’s bullish momentum has slowed, with price action entering a narrow consolidation phase. Since last Friday, trading activity has cooled, and volatility has weakened — raising concerns that sellers could soon regain control.
Price Stuck Between Support and Resistance
The XRP/USD daily chart shows price oscillating within a tight $3.22–$3.30 range over the last three sessions. This sideways movement suggests an accumulation period, as buyers and sellers reach a temporary equilibrium while waiting for a decisive catalyst to set the next direction.
Volatility Declines — Calm Before the Storm?
The Average True Range (ATR), which measures market volatility, has dropped 10% since August 7. Historically, such periods of low volatility often precede sharp price movements, as the market builds up pressure before a breakout or breakdown.
Technical Indicators Show Waning Buyer Strength
The Elder-Ray Index continues to display a green histogram — a sign of buying pressure — but the bars have been shrinking. This decline indicates weakening bullish momentum, giving sellers more room to exert downward pressure.
Key Decision Zone: $3.22–$3.33
Bearish Scenario: A decisive break below $3.22 could open the way for a deeper drop toward the $2.99 level.
Bullish Scenario: A break above $3.33 would signal renewed buying strength, potentially pushing XRP toward the next resistance at $3.66.
Outlook
XRP’s market is currently in a compression phase, with low volatility masking potential for a sharp move. Traders should closely monitor the $3.22 support and $3.33 resistance levels, as either could serve as the trigger for the next major price trend — whether a sharp correction or a fresh breakout.
