XRP market momentum has slowed since Friday, with cooling trading activities and price action moving sideways.
Tokens, which saw a modest move at the beginning of the week, are now showing signs of lower volatility and weakening demand, raising concerns about potential bearish changes.
XRP trading flatlines, but sellers can take control immediately
XRP/USD One Chart Measurements show that AltCoin has trended within a narrow range over the past three trading sessions. Since Friday, XRP has faced resistance at $3.30 and found support at $3.22.
This followed a four-day rally between August 3rd and 7th, during which tokens surged by 20%. Current horizontal trends reflect a relative balance of trading pressures, indicating a decline in market volatility.
At this stage, the market is often in a “waiting” mode, with traders expecting a catalyst to determine the next price movement.
The decrease in volatility is evident in the average true range (ATR) of XRP. This has been a 10% decrease since August 7th. The ATR measures the degree of price fluctuations over a set period, and the decline in the ATR indicates mild market conditions with low volatility.
A period of low volatility suggests market stability, but it could mean that traders are no longer aggressive.
Additionally, XRP’s Elder Ray Index enhances the case of potential bearish breakouts. This indicator measures the strength of the buyer (bullock power) and seller (bell’s power) by comparing price movements with moving averages.
On XRP’s daily charts, the Elder-Ray index features a green histogram bar representing bullishness, which has steadily declined in size over the past few days.
This contraction refers to a loss of momentum to buy momentum, creating an opening for sellers to control and promote XRP prices.
XRP faces a moment of make or break between $3.22 and $3.66
Strong sell-side pressure can trigger a break below support at $3.22. If this occurs, the price of XRP could deepen the decline and drop to $2.99.
However, XRP could surpass the price barrier at $3.33 if new demand resurfaces. A successful breakout could open the rally door towards $3.66.
Post-XRP volatility may be declining – downside breaks or rally destination? It first appeared in Beincrypto.
