Ripple (XRP) Nears Breakout — Major Uptrend Could Be Next

Key Takeaways

• XRP completed a W-X-Y corrective pattern at major support.
• Breakout from the descending wedge could initiate a bullish wave.
• Fibonacci extensions suggest upside targets above $3.50.

Ripple (XRP) has experienced heightened volatility after completing a corrective wave structure, with price action suggesting a potential reversal. 

The 4-hour chart highlights a deep retracement to a key Fibonacci support level, while the 1-hour chart indicates an early impulse wave forming.

This suggests that XRP could begin a new uptrend, contingent on breaking through key resistance levels.

XRP Price Analysis

XRP recently concluded a significant corrective phase following its prior five-wave impulse rally, which peaked at around $3.40 on Jan 16.

The price retraced sharply, forming a complex W-X-Y corrective structure that found strong support near $1.80, near the 0.5 Fibonacci retracement level.

This marked a crucial inflection point at which buyers started to regain control.

Following this support test, XRP has been trading within a descending structure, a pattern often associated with bullish reversals.

A breakout above the wedge’s upper boundary, currently near $2.40, would confirm the reversal and shift market sentiment in favor of the bulls.

Fibonacci levels indicate key resistance at $2.69 (0.236 retracement), followed by $3.07 (0.786 retracement), which will be critical for sustaining an upward trajectory.

The Relative Strength Index (RSI) on the 4-hour chart remains neutral but is beginning to recover from oversold conditions.

If momentum builds, XRP could swiftly rally toward its prior highs, provided it maintains support above $1.95.

XRP Price Prediction

The 1-hour chart offers a more detailed outlook, where an early-stage five-wave impulse structure appears to form.

XRP has completed wave (i) to a high of $2.80 and is currently likely in wave (ii), consolidating within a tight range.

The next impulsive move (wave iii) could extend toward $3.07 if the price breaks the immediate resistance around $2.40.

A bullish scenario would see XRP climbing through Fibonacci extensions, targeting $2.80 (0.618 Fib), $3.28 (1.0 Fib), and potentially $3.86 (1.618 Fib) in a full five-wave cycle.

However, a rejection at current levels could lead to a retest of the $1.95 support before a confirmed breakout.

The RSI on the lower time frame is attempting to recover from oversold conditions, suggesting a bullish divergence.

The projected wave (iii) could accelerate quickly if buying pressure increases. Traders should monitor volume and momentum indicators for confirmation.

Key Levels to Watch

• Immediate Resistance: $2.40 (Descending channel Breakout Level).
• Key Resistance: $2.69 (0.236 Fibonacci), $3.07 (0.786 Fibonacci).
• Critical Support: $1.95 (0.5 Fibonacci Retracement).
• Bullish Target: $3.86 (1.618 Fibonacci Extension).
• Bearish Invalidation: Below $1.95 (Break of Structural Support).

XRP is positioned for a breakout, with a move above $2.40 confirming a bullish wave. If momentum holds, targets at $3.07 and beyond remain in play.