XRP finds itself in a consolidation phase following a notable rally. The cryptocurrency’s price movement reflects a period of stabilization as traders evaluate the next significant move.

Daily Chart: XRP Holds Gains Amid Consolidation

XRP’s daily chart reveals a period of steady upward momentum earlier in the year, culminating in a climb from $0.54 to a peak near $2.91. This rally encountered significant resistance at the $2.91 level, causing the price to retreat to the $2.20–$2.40 range.

This pullback signifies a pause in bullish momentum rather than a reversal. If XRP can decisively break through the $2.91 resistance with robust trading volume, it could pave the way for another upward move. Conversely, a breach below $2.20 might signal the beginning of a broader correction.

The reduced trading volume during this consolidation period indicates a cautious market. Traders are likely waiting for clearer signals before committing to larger positions.

4-Hour Chart: Testing the Boundaries of Consolidation

On the 4-hour chart, XRP’s price is oscillating within a defined range of $2.20 to $2.65. This range-bound movement highlights the equilibrium between buying and selling pressures.

The higher lows observed near the $2.20 level suggest strong support, while $2.65 continues to serve as a key resistance level. The muted trading volume during this phase reflects a temporary lull in momentum, as traders await a potential breakout.

If XRP breaks above $2.65 with increased volume, it could signal renewed bullish activity. However, if the price dips below $2.20, it may trigger a downward trend as sellers gain control.

1-Hour Chart: Short-Term Movement Remains Limited

The 1-hour chart paints a similar picture of tight consolidation, with XRP trading between $2.38 and $2.48. These levels represent immediate support and resistance, respectively.

Trading volume spikes near the $2.48 resistance level suggest increased selling pressure at this price point. A break above $2.48 could open the door for short-term gains, while a drop below $2.38 might lead to further downside toward $2.28.

Technical Indicators Signal Caution

Key technical indicators offer mixed signals, reflecting the current state of consolidation:

• Relative Strength Index (RSI): Neutral, indicating neither overbought nor oversold conditions.
• Stochastic Oscillator and Commodity Channel Index (CCI): Both indicators remain in neutral zones, highlighting the ongoing price balance.
• Momentum (10): Shows a bearish signal with a value of -0.30941.
• MACD (Moving Average Convergence Divergence): Also leans bearish at 0.35614.

These indicators suggest a cautious approach as XRP consolidates. Any significant price movement is likely to be preceded by a shift in these metrics.

Key Levels to Watch

For traders, the $2.91 resistance level on the daily chart remains a critical marker. A break above this level, coupled with strong trading activity, could indicate the continuation of the bullish trend.

On the downside, the $2.20 support level serves as an essential threshold. A move below this level could signal increased selling pressure and a possible decline in XRP’s price.

In the shorter term, $2.38 and $2.48 on the 1-hour chart are immediate levels to monitor.

Outlook and Strategy

XRP’s consolidation phase reflects a market in equilibrium, with buyers and sellers maintaining a balance. While the immediate direction remains uncertain, this phase often precedes significant price movements. Traders should watch for increased volume near key levels to anticipate the next trend.

A breakout above resistance or a breakdown below support will likely set the tone for XRP’s price trajectory in the coming days. For now, patience remains a virtue as the market seeks clarity.