XRP Price Nears Breakout as Key Levels and Thin Liquidity Align 

• XRP’s low volatility signals a big move with key levels at $3.20 and $2.90.  
• Thin liquidity increases the chance of sharp price swings in the coming days.  
• The market is primed for action as XRP builds strength above critical supports.  

In the XRP’s recent developments, Dom has pointed out a potential seismic move in XRP’s price action, emphasizing its volatility has plummeted to an 18-day low as the market coils up for a decisive breakout. XRP trades within a tight range, suggesting that the next move may be on the horizon, especially as Bitcoin’s recent price action has set the stage for broader market momentum.

Dom identifies $3.20 as the key level XRP must surpass to confirm a bullish breakout. This price zone aligns with the all-time high Volume Weighted Average Price (VWAP) and the weekly relative VWAP, making it an area of interest for both retail and institutional investors. On the downside, Dom highlights $2.90 as a support level, which has repeatedly served as a safety net during the current consolidation phase. 

XRP Volatility Drops: Market Prepares for Explosion

The drop in volatility—a notable 18-day trough—is a classic precursor to an imminent price breakout. Historically, such conditions in XRP have led to sharp upward or downward movements, offering traders lucrative opportunities. Dom backs this assessment with on-chart data, showing XRP consolidating above several VWAP bands, a sign of underlying market strength.

The chart also shows a contracting wedge pattern, often referred to as a coiling setup, which suggests that XRP is compressing energy for a high-magnitude move. If the bulls succeed in flipping $3.20 into a support level, the asset could rally to test its next higher targets. Failure to do so, however, could see prices retrace toward $2.90, where strong buyer interest may prevent a deeper correction.

Order Book Data Highlights Thin Liquidity

Adding to the anticipation, Dom observes that XRP’s order book liquidity remains “extremely thin.” This suggests that any significant buying pressure could quickly propel the price upward due to a lack of sell-side resistance. “So, anyone who steps up first here wins,” the analyst quips, noting that the thin liquidity environment increases the likelihood of sharp price spikes. 

He also acknowledges that Bitcoin’s price movements could influence XRP, albeit with a relatively smaller percentage share of bullish momentum.

Technical Indicators Align for a Breakout

Dom’s technical analysis aligns with broader market patterns. The VWAP data, which acts as a dynamic support-resistance indicator, confirms XRP is resting on strong support zones between $2.90 and $3.00. 

Meanwhile, the contracting wedge and low volatility setup further corroborate that a decisive move is brewing. Dom’s chart also highlights XRP’s resilience in staying above critical moving averages, reinforcing the bullish narrative for traders eyeing long positions.