Local consolidation is likely before another high, with key levels of support and resistance to watch closely.
After a corrective phase throughout December, Ripple (XRP) has kickstarted 2025 with a new rally.
Since the beginning of this year, XRP has surged by 15%, with price action indicating a likely bullish continuation, setting the stage for more upside in the near future.
XRP’s 4-hour chart reveals a completed five-wave impulse pattern, peaking at $0.29 on Dec. 3, followed by a corrective pullback.
The correction found its low at $1.90 on Dec. 30, just below the 0.5 Fibonacci retracement level.
Since then, a sharp rebound has brought the price up to $2.40, a 15% increase since the beginning of January.
XRPUSD strong breakout seen | Credit: Nikola Lazic/TradingView
The completed ABC structure followed by a WXY double-three correction confirms that the corrective phase is likely over.
The breakout from the descending wedge pattern strengthens the case for a bullish continuation. The 4-hour Relative Strength Index (RSI) confirms this, as it moves out of oversold territory, indicating a shift in momentum to the upside.
The key levels to monitor include $2.51 as resistance and $2.28 as support. A sustained move above $2.51 could lead to a retest of the previous highs near $2.89. If the price breaks below $2.28, it may test the 0.5 Fibonacci level at $2.09 again, where further support lies.
XRP Price Prediction
XRP’s 1-hour chart shows a well-defined impulsive wave structure, with an ongoing fourth wave (iv) consolidation phase. This suggests that after the initial bullish move, the price is taking a breather before the fifth wave (v) breakout, which could push it to higher levels beyond $2.50.
XRPUSD local consolidation expected | Credit: Nikola Lazic/TradingView
The impulsive wave kicked off following the breakout from the descending wedge pattern, marking the end of the previous corrective phase. The third wave (iii) exhibited strong momentum, pushing past key Fibonacci retracement levels and reinforcing the bullish trend.
The RSI on the 1-hour chart indicates that the price is approaching overbought conditions, suggesting that a brief consolidation is likely before the uptrend resumes. As the price consolidates, the key levels to watch will be crucial for determining XRP’s next move.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis.
Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information.
