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Given that XRP is perched on the brink of a significant technical crossroads, the next few days could be pivotal. The next five days could determine XRP’s course for the remainder of the quarter, either forcing it deeper into an extended downtrend or igniting a bullish breakout after weeks of sideways consolidation following a brutal sell-off earlier in October.
Optimism around XRP dissolves
XRP has stabilized after its sharp decline below the 200-day moving average, trading at about $2.1741. The recent candles indicate a slight attempt at recovery, but the structure is still brittle. Since a proper triangle pattern has not formed, some of the typical bullish optimism has been removed.
The token is currently stuck below a descending resistance line, forming a narrowing price channel that historically precedes volatility spikes. Because there is no consolidation symmetry, momentum could change drastically in either direction.
Breakout scenario
A breakout could occur, indicating the start of a trend reversal if buyers intervene and push XRP above the $2.56-$2.70 zone. However, if current support near $2.30 is not maintained, there may be a retest of the $2.00 level, which would solidify the continuation of the larger bearish structure.
A cautious picture is painted by technical indicators. The relative strength index (RSI), which is currently trading just below 40, indicates that there may be a brief recovery but little buying pressure. Bulls and bears are showing signs of hesitation, or the calm before the next move, as evidenced by the sharp decline in volume levels.
Investors should keep a close eye on XRP’s performance during these five days. At this juncture, a spike in trading activity could determine whether XRP recovers its bullish momentum or keeps losing ground. If there is not a breakout soon, XRP could enter a longer period of consolidation, with lower highs and lower lows. In that case, expectations of a speedy recovery would be dashed, and the token might enter yet another multiweek correction cycle.
Right now, everyone is watching XRP’s resistance ceiling. The market will be able to determine in five days whether this is a build-up for a recovery or the beginning of another leg down.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team