Current Market Dynamics of XRP
Ripple’s XRP experienced a notable surge, surpassing the $2.71 mark on December 17, following the introduction of the eagerly anticipated RLUSD stablecoin. However, after reaching this peak, XRP has retraced and is currently trading at the $2.55 level. The cryptocurrency has established a strong support zone around $2.40, indicating that the market trend is positive and poised for a potential upward movement.
In the short term, a micro support region has formed between $2.55 and $2.62, though it is unlikely that this zone will face immediate testing. As the third wave of the price pattern continues to evolve, it has achieved a 100% extension. Ideally, the target for this third wave is set around $2.81. It is crucial for support to remain above the current levels to maintain this trajectory. Any breach below would signal a more substantial pullback, yet still within the framework of micro structures.
Forecasting Future Waves and Market Potential
The progression of the third wave is anticipated to reach higher levels, succeeded by waves four and five, which could potentially propel XRP to challenge its all-time high. Despite the fragility of the current structure, the price movement lacks the impulsiveness seen in prior rallies, yet support levels remain robust.
Is a Breakout to $3.80 on the Horizon?
Crypto analyst Josh from Crypto World suggests that XRP is fortified with substantial support around the $2 level, where it has transitioned from resistance to support. While significant changes for XRP have been limited recently, a bullish breakout is underway, emerging from a bull flag pattern.
This breakout commenced a few days ago, and the market is now witnessing a surge in bullish momentum. XRP has been establishing new higher highs, further validating the breakout. This positive price structure, characterized by higher highs and higher lows, is encouraging for investors.
The price target for this bullish flag breakout is projected to reach approximately $3.80, representing a potential 40% to 60% increase from the breakout point. This target remains viable as the breakout has been confirmed, with prior resistance now serving as support.
