XRP Faces 10% Drop, Bulls Act as Price Hovers Around $2.75

TLDR

Table of Contents

XRP faces 8-10% drop to $2.50, with buyer clusters protecting key support levels.
XRP’s liquidity compression signals an impending volatility phase ahead.
On-chain data shows buyers active between $2.45–$2.55, indicating strong support.
ETF news drives uncertainty as XRP’s price battles at $2.75 support.

XRP’s price action is currently facing a critical test as it consolidates near the $2.75 support level, with a potential dip of up to 10%. The altcoin has shown signs of bearish pressure, especially with a descending triangle pattern forming. This technical setup indicates that XRP could drop to a lower price range if selling pressure continues. A move into the $2.65 to $2.45 range seems likely if the price breaks below the current support level.

Descending Triangle Signals Potential Bearish Move

The pattern forming on XRP’s chart suggests further downside. Traders are monitoring the $2.75 support, and sustained selling could push prices toward $2.65 to $2.45. These levels align with the 0.50–0.618 Fibonacci retracement zones, making them critical areas for a potential price reversal. Historically, XRP has bounced from similar levels, and market participants are closely watching to see if the pattern will hold.

Glassnode’s On-Chain Data Adds Support to the Technical Picture
Glassnode’s Unrealized Price Distribution (URPD) for XRP reveals a strong cluster of buyers between $2.45 and $2.55. This on-chain data indicates that a significant number of holders have positions within this price range, making it a critical zone for price defense. If XRP approaches this level, these buyers could step in to prevent further downside, potentially triggering a rebound.

XRP’s price behavior over the past few weeks has resembled a fractal pattern observed earlier in the year, where a price drop occurred before a recovery. This suggests that XRP might see a sweep below the $2.65 mark into the fair value gap (FVG) before resuming its upward movement. A retest of the $2.50 level early next week remains a likely scenario, especially if the market continues to show signs of weakness.

Liquidity Compression Points to Imminent Volatility

XRP’s price has been experiencing tight liquidity compression, indicating that volatility could soon increase. According to market analysts, XRP is entering one of its tightest liquidity phases yet, marked by narrow price action over the past 10 weeks. This liquidity build-up suggests that a sharp price movement could follow once the compressed order book is released.

As XRP consolidates, there are larger gaps forming between price levels, which could lead to a more significant price expansion once the market finds direction. This scenario has played out in previous instances when XRP saw sharp breakouts following a period of low volatility. Analysts are watching for a potential spike in volatility in the coming weeks.

ETF News and Market Sentiment

The ongoing developments regarding XRP ETFs also play a crucial role in the current market sentiment. Franklin Templeton’s XRP ETF decision has been delayed until November 14, while REX/Osprey’s XRP fund debuted with nearly $38 million in first-day volume. While such ETF news could act as a catalyst for price movement, some analysts caution that optimism surrounding the news may already be priced in.

Despite the ETF developments, XRP’s current market dynamics remain largely influenced by the battle between buyers and sellers. A decisive shift in buying volume is necessary to confirm an upside breakout. As of now, selling pressure remains dominant, and without a shift in buyer behavior, XRP may continue to face downward pressure.

Will Bulls Step In at $2.50?

As XRP teeters at the $2.75 support level, the next critical test will be whether the bulls will step in to defend the $2.50 area. On-chain data points to strong buyer interest between $2.45 and $2.55, which could act as a cushion for any further decline. A price drop to these levels would mark a significant retracement, but it could also provide an opportunity for buyers to take action and spark a potential recovery.

Market analysts are keen to see whether buyers will step up and reverse the downward trend. If not, XRP could continue its decline and approach the $2.45 to $2.50 range before a possible rebound. However, without a shift in market dynamics or a significant increase in buyer volume, the altcoin may remain under pressure in the near term.

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