XRP price Sideways Fluctuation drop raises Bear Market concerns

Since last Friday, the market momentum of XRP has slowed down, trading activity has become tepid, and the price movement is showing a sideways trend. The token had moderate fluctuations earlier this week, but is now showing signs of reduced volatility and weak demand, raising concerns about a potential bear market shift. XRP trading has become stable, but sellers may soon take control of the situation.

The XRP/USD single chart data shows that this altcoin has been fluctuating within a narrow range over the past three trading days. Since Friday, XRP has encountered resistance at $3.30, while the support level is at $3.22. Previously, it experienced a four-day uptrend from August 3 to 7, during which the price increased by 20%. The current sideways trend indicates reduced market volatility, reflecting a relatively balanced buying and selling force. At this stage, the market is typically in a "wait-and-see" state, with traders waiting for a catalyst to trigger the next price movement.

The decline in volatility is particularly evident in the average true range (ATR) of XRP, which has decreased by 10% since August 7. ATR measures the degree of price fluctuation over a certain period, and a decrease in ATR indicates a more stable market condition with reduced volatility. While a low volatility period suggests market stability, it may also indicate a decrease in trader activity, which often foreshadows a significant breakout in either direction.

Moreover, the Elder-Ray index of XRP reinforces the potential for a Bear Market breakout. This indicator measures the strength of buyers (bullish strength) and sellers (bearish strength) by comparing price movement with moving averages. On the daily chart of XRP, the green bars of the Elder-Ray index (indicating bullish strength) have been continuously decreasing over the past few days. This contraction suggests a weakening of buying momentum, creating room for sellers to take control of the market and push the price of XRP down.

XRP is facing a critical moment between 3.22 USD and 3.66 USD. Strong selling pressure may lead to a drop below the 3.22 USD support level. If this happens, the XRP price may further decline to 2.99 USD. However, if new buying emerges, XRP may also break through the 3.33 USD price resistance. Once successfully broken, it is expected to drive the price rebound to 3.66 USD.