XRP continues to decline since last week as it follows a corrective pattern. However there are signs of a bullish reversal soon.
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Key Takeaways
XRP is testing key levels.
The 0.618 Fibonacci retracement level at $1.90 is a key support zone.
A breakout from the descending triangle could define the next major trend direction for XRP.
Ripple’s XRP, which surged to a yearly peak of $2.90 in early December, has entered a consolidation phase marked by a descending triangle formation.
Recent price action suggests the asset is nearing the end of a corrective structure following a weekend dip. While XRP holds above $2, analysts anticipate one final downward move before a potential bullish breakout.
XRP’s 4-hour chart reveals a classic Elliott Wave correction within a descending triangle, stemming from its yearly peak of $2.90.
The asset has likely completed its impulsive wave (labeled 1-5) and entered a corrective phase, approaching critical support levels.
XRPUSD nearing key support | Credit: Nikola Lazic/TradingView
The ongoing correction aligns with a WXY pattern, with wave Y projected near the 0.618 Fibonacci retracement level at $1.90. The Relative Strength Index (RSI) reflects declining momentum, signaling the potential for a bullish reversal if the price holds at triangle support and Fibonacci thresholds.
Resistance levels are clustered at $2.20 (0.5 Fibonacci) and $2.28 (0.382 Fibonacci), while key support is anchored around $1.90 (0.618 Fibonacci). A decisive breakout from the descending triangle is expected to determine XRP’s next major price direction.
XRP Price Prediction
The hourly chart of XRP provides a detailed view of the ongoing corrective phase, showcasing a more granular Elliott Wave count within wave Y. The (v) wave of the final C-leg is nearing completion as XRP tests critical support levels within a descending triangle.
XRPUSD a bounce above $1.90 likely | Credit: Nikola Lazic/TradingView
A rebound is anticipated if XRP maintains its position above the green support zone near $1.90, corresponding to the 0.618 Fibonacci retracement.
However, a breakdown below this level could signal an extended bearish trend, targeting $1.64, aligned with the 0.786 Fibonacci level. The subdued RSI indicates limited bullish momentum unless bolstered by a strong external catalyst.
A breakout from the triangle would likely propel XRP toward $2.20 (0.5 Fibonacci) and $2.28 (0.382 Fibonacci). Conversely, a bearish continuation could drag the price below $1.90, potentially testing the $1.64 zone.
Critical Zone: $1.90-$1.64 for potential trend reversal or continuation.
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.
