XRP has been maintaining its position above the crucial $2.00 mark, forming a symmetrical triangle pattern with decreasing volatility. This raises the question: is this range-bound behavior a temporary pause that could precede a more significant upward trend? Despite the lack of a definitive directional bias on the chart, there are indications that a downward move below the $2 psychological level could become likely. However, it’s essential to consider that XRP is still about 300% higher than its lows from November 2024.
Although it has experienced several tests near the $2 support, it has yet to breach this level. This consolidation might actually signify a healthy retracement within a more extensive uptrend, rather than an impending reversal. In the second quarter, XRP saw considerable volatility, dropping to $1.61 and then rebounding by 40% to around $2.19. Behind this movement, over 80% of XRP’s circulating supply remained profitable during the $1.61 dip, suggesting that many holders entered during the November accumulation phase and are now sitting on substantial gains.
Data indicates that profit-taking peaked in early June, yet market structure has remained intact, as buyers have consistently stepped in at the $2.00 level in recent tests. Technical indicators reveal that this may be a phase of accumulation rather than distribution. The narrowing of the Bollinger Bands suggests that volatility is waning, often signaling an impending significant price movement. Furthermore, the lack of aggressive leveraged positions implies that the current market conditions reflect controlled risk, bolstering the notion that XRP’s consolidation is less about speculative hype and more about strategic positioning.
If sentiment shifts positively, the $2 zone could transform into a launchpad for a breakout.