XRP is currently facing a challenging market landscape, hovering near the crucial $2.75 support level. Recent analyses suggest that the altcoin may be at risk of a further decline, with projections indicating a potential drop of 8% to 10%, which could see prices fall to between $2.50 and $2.65.
The price action of XRP has formed a descending triangle pattern, commonly viewed as a bearish indication. If sustained selling pressure continues, the asset may test lower support levels, particularly the critical range identified around $2.50. This region aligns with both a daily fair value gap and the Fibonacci retracement levels between 0.50 and 0.618, creating a magnetic pull for liquidity in that zone.
Onchain data from Glassnode indicates a significant buyer cluster exists between $2.45 and $2.55, suggesting that many holders have established a strong cost basis within this range. Should the price return to this area, it is anticipated that these buyers could respond aggressively, potentially laying the groundwork for a rebound.
XRP’s current price behavior mirrors a fractal pattern observed in the first quarter of the year. The altcoin has already revisited the $2.65 level twice, and while historical data hints at a possible sweep below this mark for heightened liquidity, it does not guarantee an identical repetition of previous patterns. Market conditions may evolve differently than prior structures.
Another factor to consider is the typical weakness seen in price movements leading into weekends, followed by a potential liquidity sweep at the start of the upcoming week. If this scenario unfolds, it could result in XRP retesting the $2.50 zone as early as next Monday.
Although a decisive breakout above the $2.90 threshold could negate the bearish outlook, the current market sentiment leans towards a final dip into the $2.50 range. Analysts are closely monitoring these levels as indicators of possible market reversals.
Market observers from Sistine Research have pointed to a liquidity compression phase that XRP has experienced over the past ten weeks. This tight trading range has resulted in larger gaps between price levels and is often indicative of an impending breakout once liquidity builds up sufficiently.
XRP is in its third phase of compression since the U.S. elections in November 2024, with this phase being the most constrained yet, characterized by a series of consecutively higher price points. Historical trends show that such conditions often precede significant market movements.
Crypto analyst Pelin Ay highlighted ongoing friction between buying and selling pressures in the spot market. Despite some signs of strength from buyers, the data indicates that sellers maintain control. For sustained upward momentum, a notable shift in buying volumes is required, a change that has not yet been realized.
Amid the current volatility, ETF developments remain influential. The announcement regarding Franklin Templeton’s XRP ETF decision has been delayed to November 14, while the REX/Osprey XRPR debuted to a robust first-day volume of nearly $38 million. However, experts warn that much of the market’s optimism may already be encapsulated in current prices, which raises the risk of “sell the news” scenarios.
This article does not offer investment advice. Potential investors should conduct thorough research before making any financial decisions, as all trading carries inherent risks.
