Recent Performance of XRP
Over the past 24 hours, XRP has experienced a significant decline, dropping to the fourth position among cryptocurrencies. This decline has exceeded 14%, with the price fluctuating slightly above the $2 mark as of the latest updates. Despite this setback, XRP has tested a crucial breakout point, revisiting its 2021 high, which has spurred a notable rebound. However, the price has yet to exceed previous highs, signaling that further upward movement is necessary to solidify a positive trend.
Understanding the Current Market Structure
The prevailing market structure indicates that XRP might be navigating through the fourth wave of a more extensive corrective phase. Initially, XRP experienced a three-wave decline in wave A, followed by a three-wave ascent in wave B. Currently, it appears to be in the midst of the C-wave decline. Despite the recent rebound, the inability to surpass previous highs suggests that additional movement is essential to confirm the commencement of an upward trend.
Potential for Further Downside Movement
Even with the recent rebound, there remains a possibility, and perhaps a likelihood, of another downward dip. The establishment of a definitive low point has not yet been confirmed. In recent liquidity events, rapid price fluctuations have obscured the detailed micro-structure of the waves. Although another dip cannot be entirely ruled out, it’s noteworthy that the price has already reached the 100% extension of the A-wave, a typical target for a C-wave.
Identifying Next Support Levels
Should the downward trend persist, several critical support levels warrant attention. The first of these is around $1.85, where an overlap of two significant support zones occurs. Following this, the next levels to watch are at $1.78 and $1.66. The market continues to align with the predicted trajectory, making it imperative to observe the broader crypto market, particularly Bitcoin, as its movements could significantly influence XRP’s subsequent actions.
