XRP’s Price Volatility

XRP’s price has registered high volatility over the past month. Its trajectory in the coming weeks might see a move below $2.

XRP bulls faced the prospect of defending the psychological $2 support level for the second time in two weeks. However, they emerged successfully from this ordeal. Despite this, the higher timeframe swing structure has shifted bearishly due to the most recent downturn.

On-Chain Metrics Analysis

On-chain metrics display mixed results, hinting at a bearish continuation on the charts. The increase in XRP dominance and growth in risk-adjusted returns indicates that XRP retains a long-term bullish outlook, but traders should be cautious of potential downward movements on the daily timeframe chart.

Decoding XRP’s Rapid Structure Shifts

The bullish structure break on Sunday, March 2, is highlighted in green. The bearish structure flip is represented in red, showing XRP fell below its most recent low. The swing structure showed a higher low at $2.05 (dotted orange).

A daily session close below this level would render both the swing structure and sub-structure bearish, likely leading to further XRP losses. Key resistances to watch in the coming weeks are the 61.8% and 78.6% retracement levels at $2.58 and $2.76, respectively.

Technical Indicators

While technical indicators present mixed signals, the DMI shows a bearish trend in progress with the -DI (red) and ADX (yellow) above 20. The Awesome Oscillator is below zero, indicating downward momentum. Conversely, the CMF stands at +0.08, suggesting significant capital inflows and buying pressure.

The 1-month liquidation heatmap identifies the $2.36 zone as a notable liquidity cluster; XRP did not experience a bearish reversal here. In the coming days, the $2.5-$2.55 and $2.7 regions are expected to act as magnetic zones for the price, aligning with Fibonacci retracement levels.

Traders can anticipate a price bounce towards $2.7-$2.8, which would likely meet a bearish reversal in the following weeks. The rapid structural shifts observed over the past month highlight the potential for XRP volatility ahead.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.