Ripple is exhibiting muted price action with minimal volatility, reflecting a market in indecision. The price remains confined within a narrow trading range, with consolidation likely to persist in the short term.
Introduction
Ripple is exhibiting muted price action with minimal volatility, reflecting a market in indecision. The price remains confined within a narrow trading range, with consolidation likely to persist in the short term.
The Daily Chart
After a notable dip below the 100-day moving average at $2.1 and the lower boundary of the expanding wedge, Ripple quickly absorbed resting sell-side liquidity, which sparked a rebound above these vital support levels. This move helped clear out over-leveraged long positions in the perpetual markets, contributing to a cooling effect. Since then, the price action has been choppy with very low volatility, reflecting an uncertain market sentiment. Currently, XRP remains confined within a narrow trading range bounded by the dynamic 100-day moving average and the key $3 support level. In the absence of a decisive breakout, this consolidation phase is likely to persist.
The 4-Hour Chart
XRP’s price has shown signs of downward pressure on the shorter timeframes as it dipped into a significant liquidity zone below previous swing lows. This triggered a flurry of buy orders that led to a quick recovery. However, the impulsive rally encountered considerable selling pressure around the $2.7 level, resulting in a period of sideways trading. With the current low trading activity, the market is indecisive as buyers and sellers continue to contest the next move. Until a clear direction emerges, further consolidation within the $2 to $3 range is expected.
Ripple is in a consolidation phase with minimal volatility, creating uncertainty in determining the next trend. Prolonged sideways movement within the current narrow range is possible until the market chooses a direction.
