Since December 20, XRP's price has oscillated between $2.40 and $2.13, showing market hesitation. In the current narrow consolidation range, the market is waiting for a clear directional breakout, with $2.30 seen as a key resistance level in the short term.
1. Support and risks of the buying wall
According to the observations of anonymous analyst CW, there is a significant buying wall for XRP in the $2.20-$2.23 range. If the price can stabilize in this support area, XRP may experience a short-term rebound; otherwise, falling below this range could lead to a price test of the previous low at $1.85.
Another trader, Dom, added that although buyers in the spot market such as Kraken and Bitfinex are showing strong buying intentions, market confidence in XRP is still not solid enough. He emphasized:
"If it fails to break and hold above $2.30, the rebound of XRP will be limited."
2. Futures market: Sharp reduction in open contracts
Although buying in the spot market is active, the dynamics of the XRP futures market reveal another sentiment. According to CoinGlass data, since December 3, XRP's open contracts have plummeted from $4.23 billion to $1.95 billion, a decline of 54%.
The double-edged sword of declining liquidity: The sharp reduction in open contracts may indicate that futures market traders are losing interest in the short-term volatility of XRP, but it also means that the market could experience greater fluctuations at a critical point.
The impact of the holiday effect: During holidays, the decline in liquidity often exacerbates the price volatility, making the trend of XRP harder to predict.
3. Technical signals of a symmetrical triangle
From the daily chart, XRP's price has formed a symmetrical triangle pattern, which typically signals intensified price fluctuations.
Potential for an upward breakout: If XRP successfully breaks through and holds above $2.30, it may stimulate bullish sentiment in the market, aiming for a target price that points to the pattern high of $2.95.
Downside risk: If the current support cannot be maintained, the price may break below the lower trendline of the triangle, subsequently testing the swing low at $1.85.
4. The next moves for XRP
Currently, the focus of the bull-bear battle for XRP is at $2.30. A breakout above this key resistance will open up space for further upward movement, while failing to hold the buying wall at $2.20 may trigger more sell-offs in the market.
In the short term, investors need to closely monitor the following indicators:
Buying strength in the spot market: If trading volume continues to concentrate on mainstream platforms like Kraken and Coinbase, bullish sentiment may continue to strengthen.
Whether liquidity in the futures market rebounds: If open contracts start to grow again, it will help stabilize prices and increase volatility.
The strength of the breakout at $2.30: If XRP closes at this level, it may indicate that bulls are gaining control of the market in the short term.
The calm before the storm, or a precursor to a trend change?
Currently, XRP's price hovers around the critical range, and a breakout above $2.30 may reignite market vitality. However, if the support below is lost, market sentiment could quickly turn pessimistic. Can the bulls defend their position and break through? We shall see!
What do you think about the future trend of XRP? Feel free to comment with your thoughts!
