Key Takeaways
XRP struggled to initiate any sort of upward movement for over three years. This all changed in November 2024, when the price started a parabolic rally that triggered a 500% increase, leading to a new XRP yearly high price on Jan. 16.
While XRP has struggled since the high, it seemingly regained its footing this week and is making another attempt at breaking out, let’s examine the price movement and see what lies ahead.
The XRP price broke out from a symmetrical triangle pattern on Jan. 11 and reached a new yearly high price five days later. XRP fell slightly after the high, and while it has regained its footing, it has failed to regain all of its losses resulting from the rejection.
An important bearish development is a bearish divergence (green) in the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD).
These double divergences are rare and often mark the top of a bullish cycle.
The short-term wave count suggests that XRP is in the final portion of its five-wave increase that started in July 2024 (white). The sub-wave count is in black, showing that XRP is completing the final consolidation period before it breaks to new highs.
XRP is nearing the end of a short-term triangle (yellow), a breakout above which will confirm the beginning of the fifth and final wave.
The movement has a target of $3.55, reaching the 1.61 external Fibonacci retracement resistance. So, the XRP price increase is likely nearing its end.
Afterward, XRP could begin a lengthy correction that retraces a portion of the entire upward movement. Since the XRP increase started in July, the correction could be lengthy.
The long-term wave count offers more hope for potentially another upward movement. The most likely count suggests the XRP price started wave C with a breakout from its long-term symmetrical triangle in November.
Giving wave C 0.618 times the length of wave A leads to a high of $5.24. This would be a new XRP at an all-time high price.
Similarly to the daily time frame, a bearish divergence is developing in the RSI and MACD, which often leads to bearish trend reversals.
So, even though the long-term count offers more hope for an extension, the XRP increase is likely ending, and a lengthy correction is in store.
The XRP price has enjoyed an impressive rally since November 2024.
However, multiple signs suggest that the upward movement is nearing its end and that the XRP price will soon begin its bearish trend.