XRP Decision Time Looms as Price Reaches Crucial Point

Things are getting tighter for $XRP as it approaches a crucial point, and recent analysis suggests it could be decision time.

The compression comes amid a recent price consolidation trend after months of steep decline. Earlier rapid price swings have relapsed, and $XRP is coiling for what would be a notable directional breakout.

Key Points

• Things are getting tighter for $XRP as it approaches a crucial point, and analysis suggests it could be decision time.
• $XRP is approaching a crucial decision phase amid an ongoing compression in the coin’s price on the daily chart.
• This compression sits between the descending resistance trendline and an ascending support line.
• Typically, such price compression precedes rapid directional price swings; hence, volatility in the $XRP price could increase in the coming days.

Clear Consolidation Pattern

This outlook came from market watcher Dark Defender, who hinted that $XRP is approaching a crucial decision phase in his recent X post. He cited an ongoing compression in the coin’s price on the daily chart.

For context, this compression sits between the descending resistance trendline and an ascending support line. The resistance trendline emerged as $XRP dropped from the $2.41 high in early January and has suppressed $XRP’s price since then.

On the other hand, the rising support trendline came about from the recent leg down to $1.13 on February 5. The closing price of around $1.21 formed a strong base and has since held $XRP above the extending trendline.

Notably, an attempt to break lower today proved abortive, as it has rebounded from a low of $1.33 to trade above the trendline. This reinforces the strength of this rising support and its cruciality in subsequent price development.

$XRP Decision Time

Amid this compression, Dark Defender noted that it is decision time for $XRP. Typically, such price compression precedes rapid directional price swings. As such, he expects volatility in the $XRP price in the coming days.

While it can go either way, the analyst predicts a swing to the upside. An accompanying chart shows three targets that the coin could rally to. The first is the 1.236 Fibonacci extension at $1.66, representing a 20% rise from the current price.

$XRP Compression/Dark Defender">

$XRP Compression/Dark Defender

The next target is the 161.80% Fibonacci extension at $1.88, a 36% rise from the current market price of $1.38. The chart shows $XRP could rise to $2.60, surpassing its January high of $2.41.

Meanwhile, this remains uncertain, as price compression does not guarantee an upside move. In simple terms, $XRP could break out in either direction, depending on prevailing market sentiment and momentum.