Ripple’s XRP has recently shown a modest upward trend, responding to a crucial micro support region defined between $2.24 and $2.21. Although this price movement is encouraging, it lacks a strong impulsive character. Nonetheless, XRP has been printing higher highs and higher lows since reacting to the support zone, indicating a subtle bullish momentum in the market.
Fibonacci Targets and Ideal Price Move
The current price action is part of an internal wave pattern, with the ideal target for the C-wave of the D-wave set around $2.59. Although it’s uncertain whether the price will reach this level, this Fibonacci extension serves as a reasonable milestone target. If this ABC structure unfolds as expected, we should anticipate the price moving towards this level before completing the larger wave pattern. Subsequently, an E-wave could establish a higher low, potentially paving the way for a significant breakout.
Potential Triangle Pattern and Need for Confirmation
Another possible scenario for XRP involves the emergence of a triangle pattern. If this pattern materializes, the D-wave may eventually break out to the upside. However, to confirm this scenario, the price must surpass the previous A-wave high, ranging from $2.38 to $2.39. Failure to breach this level could indicate that the market is developing a different structure, possibly the B-wave instead.
Bullish and Alternative Wave Counts
In a bullish triangle scenario, the pattern would comprise waves A, B, C, D, and E, characterized by no lower lows, just higher lows and lower highs before an upward surge. Alternatively, the blue wave count suggests a larger correction with a WX-Y structure, where the Y-wave could evolve into a triangle pattern. While speculative at this stage, this scenario is essential to consider as a potential market development.
Key Levels to Watch: Support and Invalidation Points
Currently, support remains robust. To invalidate the existing bullish outlook, XRP would need to break below $2.24, followed by a drop beneath the swing low of $1.94, observed on December 20th. If these levels are breached, the blue wave count could become more plausible, potentially leading to further downside and a move towards the Fibonacci target area between $1.80 and $1.39.
Larger Time Frame: Long-Term Market Outlook
On a larger time frame, if XRP continues its sideways movement or forms a wave four correction as previously outlined, the overall pattern still suggests the possibility of at least one more high, potentially even two, before completing the current wave structure. The subsequent key targets could be around $3.25 to $3.30, which is in proximity to the all-time high.
