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XRP Volatility cools down – Is it about to fall sharply or break out bullish?
The market momentum of XRP has stalled since Friday, with trading activity cooling down and price volatility moving sideways. After a slight increase at the beginning of the week, this token now shows signs of falling volatility and weakened demand, raising concerns about the risk of a bearish trend.
XRP price moves sideways, but sellers may soon take control
Data from the 1-day chart shows that XRP has been fluctuating within a narrow range over the last three trading sessions. Since Friday, XRP has encountered resistance at the $3.3 level and has been supported at the $3.22 level.
Previously, from August 3 to 7, the price had a 4-day increase, rising a total of 20%. The current sideways trend reflects a fall in market volatility, indicating that buying and selling pressures are in a relatively balanced state.
In such stages, the market is often in a state of "wait and observe," as traders anticipate that a catalyst will emerge to determine the next direction of the price.
The fall in volatility is also clearly reflected in the Average True Range (ATR) indicator of XRP, which has decreased by 10% since August 7th. ATR measures the price fluctuation over a certain period and a decrease in ATR indicates that market conditions are calmer with lower volatility.
In addition, the Elder-Ray Index indicator for XRP further reinforces the likelihood of a bearish breakout. This indicator measures the strength of buyers (bull power) and sellers (bear power) by comparing price movements with the moving average.
On the daily chart of XRP, the Elder-Ray Index has consistently shown green histogram bars ( indicating the strength of the bulls), but their size has been gradually falling over the past few days.
XRP faces a decisive moment in the range of 3.22 – 3.66 dollars
Strong selling pressure could trigger a breakdown below the support level of $3.22. If this happens, the price of XRP may extend its bearish trend and fall to $2.99.
Minh Anh