XRP Consolidation Phase Triggers Volatility Expectations
XRP's recent surge in futures markets has come to an end, with the asset now entering a consolidation phase. The Open Interest (OI) has decreased to $3 billion, and leveraged liquidations have compressed.
According to Chart Nerd, this compression is a clear sign of a lower-leverage consolidation phase, with volatility expected to return soon. XRP's bulls are clinging onto the $1.40 major support line, while the asset's price remains elevated above its intermediate moving averages.
The OG altcoin is currently trading at $1.40, four cents above its SuperTrend price, which adds a support layer for big-time players to step in. XRP whales have been positioning themselves since August 19, keeping the Chaikin Money Flow (CMF) well above zero.
Chart Nerd notes that a liquidity flush is likely, given the skewness of the Aggregated Long/Short Ratio at 71% green. This suggests that short-selling traders are paying for bullish positions, but it has yet to reflect on XRP's market value.