XRP Price Action Remains Noisy Ahead of Crucial Resistance Zone

Despite the choppy short-term moves, the 4-hour timeframe maintains a bullish formation, suggesting that underlying momentum may be building.

In the realm of cryptocurrencies, where fortunes can fluctuate as rapidly as the market, a recent analysis by market analyst Andrew Griffiths has shed light on the potential trading setup for XRP, the cryptocurrency developed by Ripple.

The focus of the analysis centers around the lower timeframes of the XRP/USD pair, specifically below the 4-hour mark, where price action has been exhibiting unusually choppy behavior with a lack of clear directional bias. However, zooming out to the 4-hour timeframe provides a more constructive outlook.

While the lower timeframes have been displaying choppy trades and a lack of clear direction, the 4-hour timeframe maintains a bullish formation, suggesting that the underlying momentum may be building despite the short-term fluctuations.

A key insight shared by the analyst is that a decisive move toward the bullish order block between 2.3907 and 2.3277, with strong bearish momentum, could indicate the early signs of a structural breakdown.

In his recent post on X, formerly known as Twitter, Griffiths highlighted that this price zone has historically acted as a significant area of demand, where buyers tend to intervene to defend support. However, if sellers manage to exert dominance within this region and the price fails to hold, it could signal a shift in market dynamics, potentially invalidating the current bullish setup.

This technical scenario unfolds against the backdrop of broader crypto market trends showing signs of bullish strength. Bitcoin's dominance remains in a healthy range, while the TOTAL2 chart, which tracks the performance of altcoins excluding Bitcoin, continues to display a bullish market structure.

These broader trends support the idea that the current weakness in altcoins may be a temporary shakeout rather than the start of a deeper reversal.

As such, price action around the order block could be a key turning point in the days ahead.

Trade Setup: Await Confirmation At Key Levels

Andrew Griffiths further outlined a strategic trading approach centered around the 4-hour bullish order block between 2.3907 and 2.3277. According to Griffiths, a price test of this zone, if accompanied by weak bearish momentum, could present a favorable buying opportunity.

This aligns with his personal trading methodology, which focuses on identifying high-probability entries where price reacts to key levels with signs of exhaustion from the opposite side. For traders seeking to capitalize on potential long setups, this zone may serve as an ideal area for entry, provided certain conditions are met. Signs such as decreasing sell volume, long lower wicks (suggesting rejection), or bullish candlestick formations within or just above the zone could be viewed as confirmation of weakening bearish pressure.

Moreover, Griffiths emphasizes the importance of patience and waiting for a clear reaction, rather than preemptively entering a position, to minimize the risk of a deeper breakdown. A well-placed stop-loss just below the lower boundary of the order block (2.3277) could also offer a favorable risk-reward ratio, especially if the broader trend continues to move upwards.