XRP Climbs to $1.50 Milestone, Momentum Slows After Pattern Breakout

Key Takeaways

• Major Breakout Confirmed: XRP surpassed $1.00 resistance, marking the start of wave 3.
• Overbought Conditions: RSI suggests consolidation before the continuation of bullish momentum.
• Support Retest Critical: A pullback to $1.00 may confirm trend sustainability.

XRP has shown a powerful rally, breaking out of prolonged consolidation to achieve a yearly high of $1.44 on Nov. 21.

The breakout above $1.00 signaled its bullish trend, marking wave 3 in a larger impulsive structure. With strong momentum but an overbought Relative Strength Index (RSI), a short-term consolidation or pullback is anticipated to test support before the next leg upward.

XRP Price Analysis

The daily chart for XRP demonstrates a robust breakout above long-standing resistance levels, signaling a continuation of its bullish cycle.

Following a prolonged consolidation phase until the Nov. 4 low of $0.50, XRP surged past $1.00, developing its wave 3 within a higher-degree impulsive structure.

Strong buying momentum has supported this breakout, driving the price to a new yearly high of $1.44.

The RSI has entered the overbought territory, reflecting the sharp rally but suggesting a potential short-term cooldown or consolidation phase.

XRP’s ability to sustain above $1.00 will be critical for validating further upward movement in the coming waves.

Key Observations

1. Major Breakout Achieved: XRP broke above $1.00 resistance, confirming wave 3 within a bullish cycle.
2. Overbought RSI: Momentum remains strong but indicates potential for a short-term consolidation.
3. Support Retest Likely: A pullback to $1.00 may validate support before wave (iv) correction ends.

XRP’s current structure suggests continuing toward higher Fibonacci targets as wave 5 unfolds, contingent on holding key support levels. A successful retest of $1.00 would confirm the bull phase and pave the way toward $1.60 and beyond.

XRP Price Analysis

The hourly chart for XRP shows a sharp breakout from a bullish continuation pattern.

After this parabolic rally completed wave (iii) to a local high of $1.26 on Nov. 16, the price started consolidating, forming a symmetrical triangle.

On Nov. 21, it started its latest uptrend, going from a low of $1.10 to a new yearly high of $1.44. This continues the five-wave pattern from Nov. 4 as the ending wave.

It approaches $1.50, which could conclude this uptrend, sending XRP to a larger ABC correction.

If this happens, XRP could retrace its previous horizontal support of $1 before continuing its higher degree wave 5. 

Key Levels to Watch

• Support Levels:
  • $1.15: Likely wave (iv) target and Fibonacci retracement zone.
  • $1.01: Key horizontal support and prior breakout level.
• Resistance Levels:
  • $1.50: The projected wave (v) target aligns with the 1.618 Fibonacci extension.

About the Author

Nikola Lazic

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. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.

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