XRP Consolidation Phase Sets Stage for Next Move

XRP is holding firm near $2.10 with modest gains, caught in a tightening price range as traders await the next directional catalyst. The lateral price action paired with consistent trading volume has created a classic setup where a significant move could be imminent in either direction.

The Pattern Suggests Building Pressure

Market structure reveals a familiar rhythm: XRP surged in July, spent the following months in sideways trading, and has gradually declined since November without substantial downward momentum. This deceleration in selling pressure is a telling sign.

According to recent technical observation, if bullish conditions emerge, resistance zones between $2 to $3 become potential targets. Conversely, weakness could push the token toward $1.50. The $1.86 support zone has become the pivot point traders are monitoring closely.

Momentum Indicators Flash Mixed Signals

The RSI (Relative Strength Index) is painting an interesting picture. While XRP has been printing lower lows on the price chart, the RSI has simultaneously formed higher lows—a classic bullish divergence. This suggests selling momentum is waning even as price remains compressed. With RSI climbing away from oversold territory, early accumulation by buyers may already be underway beneath the surface.

The daily timeframe shows indecisive candle action. A sustained break above $2.00 could open a path toward $2.75, while a rejection there might spark short opportunities. On the flip side, a bullish bounce from the $1.82 level could generate meaningful upside momentum.

Supply Dynamics Signal Potential Shift

A striking development: XRP held on exchanges has plummeted to just 1.6 billion tokens—the lowest in seven years, down sharply from 3.76 billion in October. This dramatic reduction suggests holders are either losing conviction to sell or shifting into long-term storage mode. Tightening exchange supply typically precedes rallies, as fewer tokens remain available for distribution.

Historical context adds intrigue: XRP previously spent over 2 months below the 50-week simple moving average before launching an 850% rally. The current consolidation echoes that setup, though confirmation remains pending.

With price compressed, volume steady, and technical indicators flashing mixed but increasingly constructive signals, XRP traders should remain alert. The next weekly close could prove decisive in determining whether consolidation breaks upward or fractures lower.