XRP, the fourth-largest cryptocurrency by market capitalization, is currently hovering near the support level of $2.75, risking a decline of 8-10% to $2.50. According to on-chain data, a strong buyer cluster is present between $2.45 and $2.55, which could potentially serve as a launch pad for a bullish rebound. The price action of XRP is forming a descending triangle, a typically bearish setup, and persistent selling pressure has pushed the price down to $2.45.
A decline of another 8-10% would align with the daily fair value gap (FVG) plea, which overlaps with the 0.50-0.618 Fibonacci retracement levels. This zone could attract liquidity and provide a potential launch pad for a bullish restoration. On-chain data from Glassnode shows a dense group of buyers between $2.45 and $2.55, indicating a strong cost basis for many holders in this area. This suggests that when the price repeats this level, buyers will aggressively defend it, creating conditions for a rebound.
The behavior of XRP is also forming a fractal pattern similar to Q1, with the cryptocurrency testing the $2.65 level twice before. Historical structure indicates that a sweep remains possible before a sustainable rally under this level in the liquidity pool. Another notable similarity between the current setup and the former fractal is the sample weakness leading into the weekend, followed by an FVG sweep at the beginning of a new week. If this scenario plays out, XRP could test the $2.50 zone again on Monday.
While a crucial breakout above $2.90 could invalidate the early bear setup, the current market weakness is prone to a final slump into the $2.50 range. Market researcher Sistine Research found that XRP could approach a significant expansion phase in the coming months, with the cryptocurrency’s order book summarizing into a narrower area in the past 10 weeks. XRP is currently in its third compression phase since the US elections in November 2024, which is the closest to date and is based on three consecutive price compressions.
Crypto analyst Pelin Ay noted that spot market flows emphasize the continued struggle between buyers and sellers, with the 90-day spot market CVD showing that sellers have control despite short buyer strength in early 2025. Suitable advantages would require a decisive volume shift from buyers, which has not yet occurred. Meanwhile, ETF news has been making waves, with the XRP ETF decision by Franklin Templeton pushed to November 14th, and the XRPR from Rex/Osprey debuting with almost $38 million in volume on the first day. Analysts warn that the optimism may already be partially priced in, increasing the risk of “selling the news”.
This article does not contain investment advice or recommendations. Every investment and trade movement involves risk, and readers should conduct their own research before making a decision. For more information, visit https://cointelegraph.com/news/xrp-faces-another-10percent-dip-when-will-bulls-step-in?utm_source=rss_feed&utm_medium=rss_tag_altcoin&utm_campaign=rss_partner_inbound
