XRP remains ensnared in a prolonged consolidation phase, exhibiting neither commanding bullish momentum nor definitive signs of a breakdown. The interplay between the XRP/USDT and XRP/BTC trading pairs points to a prevailing indecision, characterized by price action constricting within well-defined technical patterns.
Technical Analysis
The USDT Pair
Focusing on the XRP/USDT pair, the price continues to be compressed within a descending channel. The upper resistance trendline, originating from the January peak, stands unbroken, while a robust horizontal demand zone near the $2 mark has consistently acted as a formidable support level.
Currently, XRP is positioned above both the 100-day (orange) and 200-day (blue) moving averages, hovering around the $2.3 mark. The Relative Strength Index (RSI) remains flat near 48, indicative of a lack of momentum in either bullish or bearish directions. The longer XRP maintains its position below the descending resistance, the greater its vulnerability to a potential breakdown, particularly if Bitcoin enters a retracement phase.
The BTC Pair
When analyzing the XRP/BTC pair, XRP hovers just above critical support at 2200 SAT, a level that has shown resilience since mid-April. This pair has also been trending lower within a descending channel, tightening against significant horizontal support.
The 100-day and 200-day moving averages are now flattening out above the current price, positioned around the 2500 SAT mark, thereby acting as essential dynamic resistance levels. This scenario conveys a bearish bias unless buyers can assertively reclaim the 2400 SAT threshold, enabling a breakout from the descending channel and above the moving averages.
Moreover, momentum appears to be decidedly waning, as evidenced by the RSI hovering around 30, which indicates a lack of bullish strength. Should the 2200 SAT demand zone fail to hold, XRP/BTC may swiftly decline to the 1600-1800 SAT range, identified as the next significant demand zone due to prior imbalances (fair value gaps) that formed in December of the previous year.
