XRP has found itself in a prolonged consolidation phase that hints at its subsequent price trajectory. The altcoin’s price has stagnated in the same region for several months now. There are no signs of a feasible breakout.
While this can be taken as a positive sign, it suggests that XRP’s price is not experiencing the volatility associated with the broader crypto market. This indicates that the token is pausing before making a significant move in either direction. As such, the XRP community may be monitoring the market conditions. It is waiting for a clear sign to buy or sell. But such consolidation, historically, has ended up in a price breakout. So it can be said that the bulls are monitoring the situation before deciding to make a move.
Moreover, the price stagnation could have been driven by market participants who believe XRP will go down which would result in the dumping of the token in large amounts. But XRP has responded by triggering a strong demand for the altcoin. And buyers are willing to absorb the large sell orders. Analysts believe XRP is staring at a possible price breakout in the coming days.
The consolidation shows doubt among XRP investors due to the inability to predict the possible price movement. The stagnation could have also been driven by the ongoing legal case between Ripple and the Securities and Exchange Commission (SEC). The regulator alleged Ripple of selling unregistered securities – XRP.