Ripple’s XRP has recently experienced a decline of over three percent, currently trading below the $2.40 threshold. Despite this downturn, XRP is finding considerable support around the $2 mark, while encountering significant resistance near the $3 range. This scenario presents a critical juncture for traders and investors, as the price remains tightly confined between $2 and $2.24. Maintaining this range is crucial for sustaining a bullish outlook, and these levels warrant close observation for any potential breakout or pullback.
Analyzing the Bullish Pathway
There remains a viable pathway for a bullish surge, where the existing upward trend might signal the onset of a larger wave. To validate this scenario, the price must successfully breach the resistance at $2.76. Should this occur, XRP could ascend towards new all-time highs, offering an exciting opportunity for investors.
Exploring the Wave Correction Scenario
Conversely, XRP could be undergoing a corrective phase, commonly referred to as Wave 4, where a pullback could materialize. If the price experiences a five-wave movement downward and breaches support, a more extensive correction might ensue. However, this does not necessarily indicate a shift to a bearish trend, as post-correction, prices could still climb higher.
Key Support and Resistance Levels
- Resistance: Between $2.46 and $2.76
- Support: Between $2.24 and $2.00
Next Steps for XRP
Currently, XRP is engaged in sideways price action, caught between support and resistance levels. Should a pullback occur, the support zone ranging from $2 to $2.24 could present a promising buying opportunity. From this foundation, a rebound and potentially a third-wave push higher could be anticipated in the longer-term market scenario.
Analyst’s Perspective: Aiming for the $5 Target
Analyst Josh from Crypto World highlights the formation of a potential bullish flag pattern in XRP. To confirm this pattern, the price needs to break above the resistance at $2.48 and ideally surpass the previous high of $2.62. Achieving these milestones could propel XRP towards a price target above $5, suggesting a potential gain exceeding 100%. In the event of a rejection, short-term support is established at $2.24, with additional support around the $2 level and approximately $1.95. Although short-term trends exhibit slight bearish tendencies, these are minor setbacks within a broader bullish market.
