Ripple (XRP) Tests Key Descending Resistance After 20% Price Recovery
Key Takeaways
- A breakout attempt at descending resistance suggests a potential bullish continuation.
- Fibonacci confluence supports key resistance near $2.57.
- Elliott Wave structure hints at a developing impulse wave.
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XRP has shown a notable rebound following a corrective phase, attempting to reclaim key resistance levels.
The 4-hour chart suggests that the market is transitioning from a corrective structure into a potential bullish impulse.
Meanwhile, the 1-hour chart provides insights into short-term wave developments, highlighting potential retracement zones before the next leg up.
XRP Price Analysis
XRP’s 4-hour chart presents an extended corrective phase forming a WXY pattern. The price recently bounced from the $1.95 support level.
The correction appears to have concluded with a five-wave ending diagonal, leading to a potential reversal.
The price is currently testing a prior descending trendline that acted as resistance multiple times. A breakout above this zone near $2.31–$2.57 would confirm a larger bullish wave unfolding.
The Relative Strength Index (RSI) has rebounded from oversold levels, reflecting renewed buying pressure.
A descending wedge structure formed over the past few weeks was broken, confirming short-term bullish momentum.
However, XRP must sustain its position above $2.31 to avoid another corrective leg downward. The next major resistance is $2.57, which aligns with the 1.272 Fibonacci extension of the prior correction.
Should the breakout fail, a retest of the $1.95–$2.00 support region, which is a strong demand zone, is possible.
XRP Price Prediction
The 1-hour chart provides further insights into XRP’s short-term movement, aligning with Elliott Wave projections.
A potential five-wave impulse appears to be forming, with sub-wave (i) complete and wave (ii) unfolding as a corrective retracement.
Wave (ii) is expected to dip toward the $2.07–$2.17 range before the next bullish wave initiates. The 0.5 and 0.618 Fibonacci retracement levels provide critical support at $2.12 and $2.07, respectively.
A bounce from this region would confirm wave (iii) is underway, targeting a breakout above $2.57.
If wave (iii) extends in alignment with Fibonacci extensions, we can anticipate $2.77 (1.618 extension) as the next resistance, followed by $2.94 (wave (v) potential completion).
Failure to hold above the $2.07 level could indicate a deeper pullback toward $1.95, invalidating the immediate bullish structure.
However, as long as price action maintains higher lows, the bias remains bullish. If XRP maintains support levels and sustains buying pressure, a breakout above $2.57 could lead to further gains, reinforcing the bullish case.
Key Levels to Watch
- Immediate Resistance: $2.31 (descending trendline breakout).
- Key Resistance: $2.57 (1.272 Fibonacci extension).
- Short-Term Target for Wave (iii): $2.77 (1.618 Fibonacci extension).
- Immediate Support: $2.12 (0.5 Fibonacci retracement).
- Critical Support: $2.07 (0.618 Fibonacci retracement).
- Invalidation Zone: Below $1.95, negating the bullish impulse.
