Key Insights

• XRP is currently testing the $2.75 support level, with the potential for a drop to around $2.50—a decline of 8-10%.

• Onchain data shows a significant cluster of buyers between $2.45 and $2.55.

• Current market conditions, including fluid compression and ETF developments, indicate possible expansion phases ahead.

The price movement of XRP (XRP) is quite unstable at a significant level. It has found support at about $2.75 but could fall into the $2.65 to $2.45 range if selling pressure persists. This downward movement aligns with the daily fair value gap overlapping the 0.50-0.618 Fibonacci retracement, signaling an additional decline of 8% to 10%. This area could act like a magnet, potentially setting the stage for a bullish rebound.

Onchain metrics further support this technical analysis. The Unrealized Price Distribution (URPD) from GlassNode indicates a solid cluster of buyers in the $2.45-$2.55 range, suggesting that many holders have established a cost base there. This could mean that when the price revisits this zone, buyers might step in to defend their positions, facilitating a possible rebound.

XRP’s behavior aligns with patterns observed earlier this year. It has tested the $2.65 mark twice, but historical trends suggest that we might see a dip into a liquid-heavy fair value gap below this level before any significant recoveries occur.

Interestingly, the current setup resembles prior patterns from earlier in the year, suggesting that there could be a weak run-up as the weekend approaches, followed by another quick dip at the start of the new week. If this pattern holds, XRP might retest the $2.50 zone come Monday.

That said, although these similarities are notable, historical fractals can be unreliable, and the market might take a different direction this time. A significant break above $2.90 could negate the current bearish outlook, but given the market’s present weakness, another dip to around $2.50 is looking increasingly likely.

XRP Compression Phase and ETF Developments Hint at Upcoming Volatility

Market researchers at Sistine Research have noted that XRP might soon enter a crucial expansion phase. Their analysis shows that the narrow price action of XRP over the past ten weeks has tightened the order book, creating a significant gap between trading levels.

This marks the third compression phase for XRP since the November 2024 U.S. election. Historically, these conditions usually lead to a sudden breakout once liquidity is cleared.

Crypto analyst Pelin AY has highlighted the ongoing struggle between buyers and sellers in the spot market. The data from the 90-Day Spot Taker CVD reveals that sellers are still in control, despite some initial strength from short buyers at the beginning of 2025.

Meanwhile, crucial ETF news is on the horizon, particularly regarding Franklin Templeton’s XRP ETF decision set for November 14. Additionally, Rex/Osprey’s XRPR saw nearly $38 million in volume on its opening day. Analysts caution that the optimism around these developments may already be baked into the market, raising the possibility of “selling the news” outcomes.

This article does not provide investment advice. All trading carries risks, and it is advised to conduct personal research before making any financial decisions.