Ripple’s XRP is navigating a critical juncture as it endeavors to break past the significant $2.40 mark. Recently, the digital currency experienced a dip exceeding 5-6%, undoing some of the progress made over the past week. Despite this setback, there are indications that XRP might still witness upward momentum. However, understanding the pivotal levels is essential for gauging whether market sentiment is shifting.
Key Levels to Watch
XRP is currently in a consolidation phase, which might persist for some time. Nevertheless, on shorter time frames, this phase could be nearing its conclusion. An impending upward movement could complete a larger 5th wave, potentially propelling XRP to unprecedented heights. The most recent Wave 4 hit its nadir in July 2023, suggesting that the market could be entering the 5th wave upward.
Resistance Zones (Long Term)
For long-term investors, key resistance levels to keep an eye on include the all-time high of $3.30 reached in December 2017. Beyond this, the next resistance points lie at $4.20 and $5.00. Should XRP achieve a new high, a major corrective phase could ensue, similar to the previous Wave 2. Such a correction could be both extensive and prolonged, warranting caution.
Short-Term Market Structure
Analyzing the smaller time frames, XRP is presently forming a triangle pattern, indicating market indecision. This pattern often precedes another upward movement. A breakout above the $2.46 level would suggest that a low has been established, potentially paving the way for new all-time highs.
Current Support Levels
Crucial support levels are situated between $2.29 and $2.40. In the event that XRP dips below $1.96, it would indicate a more significant correction, though it might not necessarily suggest a continuation of the triangle pattern. To maintain the bullish perspective, XRP must remain above this green support zone.
What’s Next for XRP?
If XRP manages to break past the previous swing high at $2.46, it could herald the onset of a journey toward new highs. Until such a breakout occurs, the focus remains on XRP’s ability to sustain its position at support levels and elicit a robust market reaction.
In conclusion, Ripple’s XRP remains at a pivotal moment, and understanding the key resistance and support levels will be crucial for traders and investors aiming to navigate the market effectively.
