XRP has recently bounced back, trading at approximately $1.37 on daily timeframes, having recently created declining highs for nearly two months since its January high.
Although it has continued to decline over the past several weeks in a bearish trend, there appear to be signs that XRP’s price structure may be forming compression patterns, which is typically indicative of a volatility expansion phase forthcoming. At press time, the coin is trading at $1.35Â with a decline of 2.67% over the past 24 hours.
$1.65 Acts As The Key Structural Level
According to the data from TradingView, XRP is still making lower lows and lower highs, but recently has found some support around $1.30.
The most recent MACD histogram bars are turning positive, indicating bullish momentum; whereas RSI is also experiencing increasing momentum but has not yet reached the bullish threshold level of 50.
Therefore, should the price be able to close above $1.65 on a daily basis, it would negate the previously developed lower-high pattern of the pricing structure.
In addition, establishing support will open the potential for prices to reach the next resistance level of 1.85 USD and possibly the psychological level of 2.00 USD.
If the price is not able to close above this resistance level, it could then see prices move back down toward $1.30 or $1.20 to look for liquidity.
Also Read: XRP Yield Products Expand as Validator Flags Risks
Institutional Narrative Attracts Attention
According to the recent update on X by the user named JackTheRippler, the Bank of Japan is testing blockchain technology for settlement of financial institution transactions.
The post also states that SBI Holdings has XRP integrated into its products or services, which provides further speculation regarding the institutional use case for the month of March for the coin, where an increase in positive narrative strength was noted.
In summary, whether or not bulls can take control of $1.65 will be crucial for the coin in March. Until there is a breakout of the consolidation phase, XRP is in a period of price compression at this time, preparing for an explosive move.
Also Read: XRP Volatility Hits Highest Since March 2025 as Analyst Warns of Bearish Setup