Current Price Reaction and Bullish Momentum
Ripple’s XRP has recently shown a minor upward movement, responding to a micro support zone situated between $2.24 and $2.21. While this upward trend is a positive indication, it lacks a strong impulsive nature. Despite this, XRP has been charting higher highs and higher lows since interacting with the support area, indicating some emerging bullish momentum in the market.
Fibonacci Targets and Ideal Price Move
The ongoing price activity is part of an internal wave structure, with an ideal target for the C-wave of the D-wave positioned around $2.59. Although reaching this level remains uncertain, this Fibonacci extension offers a logical milestone target. Should the ABC structure unfold as anticipated, the price is expected to approach this level, preceding the completion of a more extensive wave pattern. Subsequently, an E-wave could establish a higher low, potentially setting the stage for a breakout.
Possible Triangle Pattern and Confirmation Needed
The current price action may evolve into a triangle pattern, representing another possible scenario. In this case, the D-wave might eventually break to the upside. To confirm this pattern, the price must surpass the previous A-wave high, located between $2.38 and $2.39. If XRP fails to exceed this threshold, it may suggest the development of an alternative market structure, such as the B-wave.
Bullish and Alternative Wave Counts
Under the bullish triangle scenario, the pattern would encompass waves A, B, C, D, and E, characterized by no lower lows, only lower highs and higher lows before initiating an upward move. Alternatively, within the blue wave count, a larger corrective structure with a WX-Y pattern could be unfolding, where the Y-wave might develop into a triangle formation. Although speculative at this juncture, this scenario is crucial to consider as a potential market evolution.
Key Levels to Watch: Support and Invalidation Points
Currently, support remains robust. To nullify the existing bullish perspective, XRP would need to breach the $2.24 mark, followed by a decline below the swing low of $1.94, recorded on December 20th. Should these levels be violated, the likelihood of the blue wave count scenario may increase, potentially leading to further downside and movement towards the Fibonacci target zone between $1.80 and $1.39.
Larger Time Frame: Long-Term Outlook
In the broader time frame, if XRP continues its lateral movement or initiates a wave four correction as mentioned earlier, the overall pattern suggests the possibility of at least one, if not two, more highs before the current wave structure concludes. The subsequent key targets could align around $3.25 to $3.30, approaching the all-time high.
