Ripple’s XRP has recently experienced an upward trend, rising by over four percent to reach levels around $2.40. This significant movement has sparked interest among traders and investors alike, as the currency’s chart patterns remain largely consistent with past observations. The primary question that arises is whether this uptick signifies a breakthrough to new all-time highs or if XRP will once again test its previous peak of approximately $3.30.
Key Support and Resistance Levels
An important reaction has been noted at a previous breakout point, which aligns with the highs achieved in 2021. This pivotal level, indicated by a green line on the chart, was retested from above just yesterday. There is a possibility that XRP remains in its third wave, with potential for another peak before the market advances further.
Even if XRP experiences a temporary decline beneath the green line, signaling short-term weakness, there exists a Fibonacci support zone ranging between $15 and $17. Nevertheless, short-term traders should focus more closely on smaller-time frame support levels, which are crucial for immediate price movements.
Larger Time Frame Outlook
The overarching outlook for XRP suggests that the cryptocurrency is currently navigating through its third wave within the broader cycle. This perspective will persist unless the market presents a significant deviation from this established pattern. Should this scenario unfold as anticipated, the conclusion of wave four could pave the way for wave five, potentially propelling prices into the $5-$10 range.
Critical Support Levels
To sustain the bullish scenario, it is imperative for XRP’s price to hold above the $1.99 mark, which represents a 78.6% retracement of the previous day’s rally. Ideally, in a more favorable bullish situation, the price should not fall below this threshold. Additional support levels are identified between $2.20 and $1.99, specifically at $2.14, $2.07, and $1.99. This crucial zone is where the price is expected to stabilize before potentially ascending further.
While there is no certainty that a pullback will occur, there remains a possibility that waves A or one could reach new heights, leading to a five-wave upward movement. Should a pullback take place, the critical support area will be where buyers are anticipated to make their move.
