CryptoComes Original Article
At the moment, XRP is trading close to $3, but this figure does not mean much in the long run. The value of $3 might appear to be a round number with psychological significance, but in actuality, XRP's current market structure makes it transitional rather than definitive. The asset’s position within a tightening symmetrical triangle, which is now getting close to its apex, is far more important than the fact that it is hovering around $3.
Triangle dictates everything
XRP has been consolidating between lower highs and higher lows on the daily chart since it peaked above $3.50 in July. A triangle formation that is almost resolved has been produced by the compression of price action. Such setups rarely last for very long, as history frequently demonstrates: when they do, the breakout is typically swift and clear. It basically makes no difference in this context whether XRP is currently trading at $2.95 or $3.05.
The idea is supported by volume trends. Throughout the consolidation, trading activity has gradually decreased, suggesting hesitancy on the part of both bulls and bears. This lack of conviction will soon end, as participation is expected to rise sharply after the triangle is resolved. Confirming indecision, the Relative Strength Index (RSI) is at 48, which is close to neutral. Put differently, XRP is coiled rather than committed.
XRP breaking through
While resistance is located close to $3.10-$3.15, the immediate support zones are $2.76 and $2.60. If XRP breaks through support, it could be pulled toward $2.50, but a clear break above resistance could send it back to test $3.40 and higher very quickly. Although the direction is unclear, the compression ensures future volatility.
The obsession with the $3 level is currently pointless. XRP is merely waiting; it is neither taking over nor collapsing at $3. The triangle shape, the decreasing volume and the inevitable breakout are the true story. The $3 level is only a staging area. This short-lived price indicator will never fully define XRP's trajectory; the next move, whether bullish or bearish, will.
