Ripple’s XRP has recently experienced a dip, trading below the $1.40 mark, and has declined by over five percent within the last 24 hours. This pullback occurred after a brief rally that followed Gary Gensler’s resignation, during which the price surged to $1.51 before reversing course. Notably, this downturn aligns with a general downward trend seen in several major cryptocurrencies, including Bitcoin.
Support Holds Strong – What’s Next for XRP?
Crypto analyst Josh from Crypto World highlights that XRP is currently retesting a critical 78.6% Fibonacci retracement level. This level, situated around $1.30, previously acted as resistance but is now serving as robust support. Over recent days, XRP has consistently found support within the $1.25 to $1.30 range, making this a crucial price zone to monitor for future movements in XRP’s trend.
Should the $1.25 to $1.30 support range fail, the next significant support level is anticipated to be in the golden pocket area between $1.00 and $1.04. This suggests the possibility of a decline towards the $1 mark, presenting a bearish scenario.
Bullish Trends in the Broader Market Context
Despite these short-term fluctuations, XRP’s technical outlook remains optimistic on larger timeframes. A definitive break below $1.25 would indicate a shift in this perspective. However, as it stands, the broader trend appears to be holding, especially in terms of long-term market dynamics.
Currently, XRP seems to be forming a symmetrical triangle pattern, characterized by an ascending support line around $1.33 and a descending resistance line near $1.48. While the support line requires further confirmation, the resistance line has multiple touchpoints, making it more reliable. A third touchpoint on the support line would provide clearer validation of this pattern.
Potential for Breakout or Breakdown
Once this symmetrical triangle pattern is confirmed, it could result in notable price movements. Should XRP break above the resistance line at $1.48, the target price could reach approximately $1.77. Conversely, a break below the support at $1.33 might lead to a drop to around $1.10. In either scenario, a breakout or breakdown could result in an 18% price move in either direction, presenting potential trading opportunities for investors.
In conclusion, while XRP is facing short-term challenges, the overall market conditions and technical patterns suggest potential for significant movements. Traders and investors should remain vigilant, monitoring key support and resistance levels to capitalize on potential opportunities.
