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Recently looking at XRP's trend, it feels like watching an electrocardiogram—fluctuations are not significant, but it makes traders uneasy. After rising from 1.8680 to 2.0386, the price has been stuck in this narrow range, unwilling to break through.
This deadlock is actually easy to understand. The bulls want to push higher but are worried about heavy selling pressure above; the bears want to dump and cut the leeks but are afraid of missing out on the subsequent rally. Both sides have concerns, so they are engaged in a tug-of-war.
To determine who will ultimately win this standoff, two things are key: candlestick patterns and trading volume.
First, let's look at the candlestick. The recent four-hour candles forming a doji pattern is a subtle signal. Doji itself leans bearish, but the crucial point is its position—after a rapid upward move. This indicates that the bullish momentum has been largely exhausted, and the bears are lurking nearby, gathering strength. It's like two people holding each other up; one is already a bit exhausted, while the other hasn't attacked yet but is ready.
The performance of trading volume is equally worth noting. During sideways consolidation, if volume is low, it indicates that market participation is moderate, and the true direction hasn't been decided yet. At this point, it’s often when large orders quietly build positions.
To find a genuine entry opportunity, you need to wait for these two signals to become clear: first, a confirmed breakout of the doji; second, a significant increase in volume. Only then can it be confirmed that one side has truly made a firm decision. Until the signals are confirmed, staying on the sidelines might be the most prudent choice.