Ripple (XRP) Breaks Key Resistance but Struggles to Gain Momentum

Key Takeaways

• Bullish breakout structure forming from correction.
• Fibonacci extension levels suggest key targets above $3.
• Momentum is increasing, signaling a potential trend shift.

XRP shows signs of potential upside after a corrective phase, after a breakout beyond key descending resitance.

The higher time frame suggests a consolidation period within an Elliott Wave corrective structure, while the lower time frame indicates a possible breakout with bullish Fibonacci extensions.

XRP Price Analysis 

On the 4-hour chart, XRP has been navigating a complex Elliott Wave correction following its peak of $2.90 in December. A series of ABC structures define the price action.

The higher time frame shows an extended corrective sequence, leading to a potential WXY pattern, which may now be reaching completion. 

Although it made a higher high of $3.40 in mid-January, we saw a reversion to a lower low of $1.77 on Feb. 3.

The price found strong support, snapping above and closing the 4-hour candle at $2.25, leaving a 26% wick. 

The structure suggests that XRP may have completed a larger correction and could be forming the first wave of a new bullish cycle as it proceeds to recover to $2.50.

The break above the descending resistance further supports the bullish argument, though the price must maintain above this breakout zone for confirmation.

The Relative Strength Index (RSI) is recovering from oversold levels and is now approaching neutral, which could indicate further upside if it breaks above 60.

Fibonacci retracement levels show that XRP has reclaimed key support at $2.45 (0.236 Fibonacci level). The next significant resistance lies at $2.90 (0.786 Fibonacci retracement) and $3.08 (1.0 Fibonacci level), which aligns with previous structural highs.

Should XRP fail to hold above $2.45, it risks re-entering the consolidation zone, potentially testing support near $2.26 or even $1.95.

However, as long as the price remains above the breakout structure, the bullish bias remains intact.

XRP Price Prediction

On the 1-hour chart, XRP appears to be in the early stages of a new impulsive wave structure. The price recently broke out from a symmetrical triangle, suggesting a bullish continuation pattern.

If this breakout is sustained, XRP could target Fibonacci extension levels near $3.59 (1.618 Fibonacci) and ultimately around $4. 

The immediate challenge for XRP is breaking past the $2.77 level, which coincides with the 0.618 retracement of the previous decline.

A clean break above this level could see rapid acceleration toward $3.08, while failure could result in a pullback to retest $2.45 or even $2.26.

Wave (iii) of the developing impulse wave is expected to reach $3.60 if momentum sustains, followed by a short retracement for wave (iv) before a final push toward nearly $4 in wave (v).

The RSI is trending upwards but has not yet reached overbought levels, suggesting room for further upside.

If XRP fails to hold above $2.45, the breakout attempt will be invalidated, shifting focus back to the broader consolidation range.

Key Levels to Watch

• Immediate Resistance: $2.77 (0.618 Fibonacci retracement).
• Key Resistance: $3.08 (1.0 Fibonacci level).
• Major Resistance: $3.59 (1.618 Fibonacci extension, potential wave (iii) target).
• Immediate Support: $2.45 (0.236 Fibonacci retracement).
• Key Support: $2.26 (recent breakout support).
• Critical Support: $1.95 (structural low and invalidation level).