After breaking the $1.32 support, XRP fell to the $1.10 region and then started to move in a narrow price range. The analysis emphasized that this outlook may be considered calm at first glance, but periods of low volatility may not mean permanent stability.
Narrowing movement area is monitored in XRP
It was stated that on the daily chart, XRP was traded at approximately $ 1.14 and experienced a sharp deterioration with the downward break of the months-long descending triangle formation. It was reported that with this break, the price fell below the important moving averages and a significant increase in transaction volume was observed.
Mini glossary: A descending triangle is a technical formation in which the price tests a horizontal or near-horizontal support zone while making lower highs. Volatility compression is a narrowing of price fluctuation and usually a sharper directional movement can be seen afterwards.
On the other hand, it was stated that after the selling wave, volatility decreased rapidly, the volume fell below the peak seen in the previous sharp decline, and daily candles shrank significantly. The price movement being stuck in a narrow band was evaluated as a picture indicating that buyers and sellers were experiencing short-term fatigue.
It was stated that the current calmness in XRP should not be interpreted as stability, that the market is stuck after a hard break, and the longer the volatility is suppressed, the harsher the next move may be.
$1.08 and $1.22 stand out at technical levels
According to the analysis, XRP continues to remain below the downward sloping 50, 100, and 200-day moving averages. For this reason, it was stated that the selling trend still predominates in the technical outlook. The 100-day moving average at approximately $1.38 is providing additional resistance, while the $1.32 area, which previously acted as support, is now being watched as a significant resistance area.
In the downside scenario, the $1.08 level stands out as the critical threshold. It was evaluated that if the price falls below this support, a new wave of liquidation may occur. Above, exceeding $1.22 can be considered the first sign that buyers are gaining strength again after weeks of weakness.
| Presence | current level | Support | Resistance |
|---|---|---|---|
| XRP | $1.14 | $1.08 | $1.22, $1.32, $1.38 |
| ISLAND | $0.17 | $0.15 | $0.20, $0.23 to $0.25 |
It was noted that the Relative Strength Index recovered from the oversold area and moved to the neutral area. This appearance indicates that neither side in the market has demonstrated a strong directional will and that the price is waiting for a new trigger.
Oversold view strengthens on Cardano
On the Cardano front, it was stated that the price decreased by approximately 30 percent in a few days, falling to around $0.17, and the asset entered one of the harshest oversold regions in recent months. It was reported that after the $0.24 level, which was followed as the first support, was broken, the selling pressure accelerated, which triggered liquidations and sharp outflows.
It was evaluated that the RSI indicator in Cardano falling to oversold levels, although it does not guarantee a return on its own, could pave the way for a short-term reaction increase if the sellers start to get tired.
In the analysis, it was noted that permanence above the last low level around $0.15 would be the first positive sign for recovery. While $0.20 was seen as the first resistance on the upside, it was stated that the range between $0.23 and $0.25 constituted a stronger obstacle. On the other hand, it was emphasized that the general trend was still weak since ADA remained below the 50, 100 and 200-day moving averages.
