XRP Faces Repeated Fake Breakouts as Price Compresses Toward the Triangle Apex

XRP’s contracting triangle creates fake breakouts that unsettle both leveraged and spot traders.

Whale selling and falling options activity add pressure while sub-indicators show early upward signs.

A decisive move depends on breaks above $2.24 or below $2.10 as price nears the pattern’s apex.

XRP is causing confusion in the market as price action remains trapped in a contracting triangle. Traders face fake breakouts that wipe out high leverage positions, and spot holders also leave the market due to repeated failures at key levels. Sub-indicators show early upward pressure while the direction should form before the week ends. At the time of writing, XRP was trading at $2.18.

Triangle Compression Creates Unclear Signals

XRP trades inside a tight triangle where higher lows meet lower highs. According to an observation by CW8900, each attempt to break the upper boundary has produced sharp wicks and quick reversals. These moves create confusion because candles push beyond trend lines and then return to the pattern. High leverage traders are often liquidated while spot investors reduce exposure.

Volume rises during each breakout attempt, yet it cools once price returns to the center of the structure. The market also holds close to the triangle midpoint, and traders wait for a clear move. The Stochastic oscillator moves upward from oversold levels, and both lines rise together. MACD bars sit near zero and show weak momentum as volatility remains low.

Source: AliCharts(X)

Whale activity adds pressure. Data shows that large holders sold over 460 million tokens in four days. According to SoSoValue data, ETFs linked to XRP have seen over $643 million in inflows, yet profit-taking continues. Futures open interest rises, but options activity drops, and this suggests traders avoid volatility. Long-short ratios remain tilted toward buyers on major exchanges, though charts show no clear signal.

Key Levels Shape Market Outlook

The direction may form before the week ends as price nears the apex of the pattern. Buyers need a break above $2.24 and then $2.36 with stronger volume. A close above those areas would confirm strength at the trend line.

Source: ChartNerd(X)

A fall below $2.10 and then $2.00 would open the way toward $1.81. Chart Nerd notes that a three-month cooling period resembles the 2017 setup. The level to watch on the long chart is the three-month 20-EMA near $1.20, and structure remains intact above that point.

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