After a breakout from long-term consolidation near $2.20, the XRP price surged to $3.65 before cooling down. XRP is consolidating at $3.18. The price is testing the mid-range EMA groups and reacting to major Fibonacci levels. As momentum fades traders are closely monitoring whether short-term support at $3.00-$3.05 holds.
What’s happening with XRP’s price?
The daily chart shows that XRP respects the breakout area around $3.00 after a clean upward resolution of a six-month triangle. In just two weeks the price rose over 65%, clearing previous liquidity areas and reclaiming bullish market structure. The rally, however, hit a wall at $3.80, which is in line with previous equal highs, and Smart Money’s “Weak Highs” label.
The price has stabilized at around $3.18, just above the weekly Fibonacci level of $3.08. The price remains above the LuxAlgo BOS zone, and is structurally bullish at higher timeframes. The trendline support from the breakout in July remains intact and hasn’t been retested.
Bollinger Bands on the 4-hour chart show a moderate compression after an expansion. Price is attempting to return to the mid-band. The 20/50 EMAs are now convergent near $3.19-3.23, creating a key intraday support band just above the current price. The pivot for bulls remains the 100 EMA at 3.08.
Why is the XRP price going down today?
The significant drop is due to the overextended bullish condition and profit-taking zones. The RSI, on the 30-minute chart, peaked at 85 on July 23, and has since retreated to 65. This indicates a easing of momentum without yet turning negative. MACD has also turned mildly positive but is still near the zero line. This confirms consolidation rather than a trend reversal.
Smart Money Concept signals on the daily chart indicate that XRP broke its structure bullishly at $2.20 and a significant CHoCH was observed near $3.55, after the rally had exhausted itself near EQH. The current rejection of that region has led a redistribution stage, although no major BOS on the downside has been confirmed.
The Derivatives data provided by Coinglass shows that volume has fallen -47.46% over the past 24 hour, but open interest is up +2.28%, to $9.17B. This indicates a buildup of leveraged position despite lower activity. Binance and OKX’s long/short ratios are still heavily skewed towards longs (above 2,5), indicating that bullish sentiment continues to be dominant. This imbalance increases the risk of a rout if support at $3.00 is broken.
Price compression signals volatility ahead
The Bollinger Bands on the 4-hour chart are beginning to shrink, signaling a spike in volatility. The price is circling just below the confluence zone of the 20 and 50 EMAs around $3.20. Candles are printing within a minor range. The $3.08 to $3.00 zone is an important decision point as it coincides with the lower Bollinger Band, and the weekly 0.786 fib.
The weekly chart shows that XRP is holding well above the 0.618 ($2.83) level and the 0.5 midpoint at $2.65. As long as these support levels remain intact, the macrostructure favors a continuation towards $3.80 and beyond.
The RSI is moving up towards neutral-bullish levels on lower timeframes (currently 65.24) and MACD has crossed back up on the 30 minute view. These signals suggest that a squeeze setup could be possible if $3.23 can be reclaimed in a clean manner.
Price Prediction for XRP: Short-Term Outlook (24H).
XRP is entering a phase of volatility compression, and both the indicators and the structure point to an upcoming expansion. If bulls regain the upper hand above $3.23 the price may revisit $3.38 followed by the $3.60 – $3.65 resistance band. A breakout from this area could trigger a renewed upward trend towards $3.80 or even $4.00.
If the price falls below $3.00 then a pullback towards $2.83 (Fib 0.618) is likely. A stronger support awaits at $2.65. Below that, a long-term BOS area around $2.20 is a major invalidation level.
Overall, XRP is currently in a consolidation phase following a sharp rally. The next 24 hours will likely determine whether or not the bullish structure continues, or if a deeper retracement occurs.
XRP Price Prediction Table: July 27, 2020
|
Indicator/Zone |
Level/ Signal |
| Today’s XRP price | $3.18 |
| Resistance 1 | $3.23 |
| Resistance 2 | $3.60 |
| Support 1 | $3.00 |
| Support 2 | $2.83 (Fib 0.618) |
| Weekly Fib Support Zone | $2.65-$2.83 |
| Bollinger Bands (4H) | Tightening |
| EMA Cluster (20/50/100, 4H) | $3.08-$3.23 |
| RSI (30 min) | 65.24 (Neutral-Bullish) |
| MACD (30-min). | Crossover Building |
| Open Interest (Derivatives) | $9.17B (+2.28%) |
| Volume (24h). | $9.85B (-47.46%) |
| Long/Short Ratio (Binance) | 2.667-3.158 (Long-heavy bias) |
| Smart Money Structure | CHoCH $3.55 BOS $2.20 |
This site is for entertainment only. Click here to read more
