XRP Stalls at Descending Channel Resistance, Hinting at Further Decline

Key Takeaways

• XRP peaked at $2.90 and is now in a corrective structure
• Key support levels include $2.20, $1.98 (0.382 Fib), and $1.70 (0.5 Fib).
• A breakout above $2.50 signals a bullish continuation, while a breakdown below $2.20 increases bearish risks.

XRP has completed a five-wave impulsive structure, peaking at $2.90, followed by an ongoing correction.

The price is consolidating within a descending channel, with resistance at $2.40-$2.50 and support at $2.20, as the correction nears completion.

Momentum remains neutral, leaving room for a breakout or a deeper decline. A breakout would confirm a bullish trend resumption, while failure to hold $2.20 would signal continued bearish pressure.

XRP Price Analysis

The XRP chart on the 4-hour timeframe shows a completed five-wave impulsive structure, with the fifth wave marking a peak around $2.90.

Following this peak, an ABC corrective pattern unfolds, with wave (a) leading to support at $2.20 and wave (b) testing the $2.60 descending resistance line. 

Its next low of $1.92 on Dec. 10 was wave (c), with the following increase leading to another retest of the descending channel resistance.

This brings two possibilities ahead, but a bearish one currently looks more likely as it appears that the price is getting rejected. 

The price is consolidating, which is often considered a bullish continuation pattern. If the correction continues, Fibonacci retracement levels, particularly 0.382 ($1.97) and 0.5 ($1.7) serve as critical support zones.

The 4h Relative Strength Index (RSI) indicates neutral momentum, allowing for further corrective action or potential breakout scenarios.

A breakout above $2.50 could signal the end of the correction and a resumption of the bullish trend. However, failure to hold key support at $2.20 increases the likelihood of testing deeper retracement levels. Overall, the structure remains corrective, and we await confirmation of the next directional move.

Key Observations

• The chart completed a five-wave impulsive structure, peaking at $2.90.
• An ABC correction is underway, with wave (b) testing resistance near $2.50.
• The descending wedge pattern suggests a potential bullish breakout.
• RSI remains neutral, indicating room for movement in either direction.

XRP Price Prediction

The XRP 1-hour chart highlights a descending channel pattern within an ABCDE corrective structure, typical of consolidation following an impulsive move.

The price remains below the $2.40 resistance, with support holding at $2.20, signaling indecision as the pattern nears completion.

A breakout or breakdown from the structure will determine the next major move.

The 1h chart RSI shows weakening momentum, leaning toward bearish sentiment but still within a neutral range.

If the current wave (e) completes near $2.20, a potential bullish breakout could target $2.50 or higher. However, a breakdown below $2.20 increases the likelihood of further declines in Fibonacci support levels.

Key Fibonacci levels at 0.382 ($1.98) and 0.5 ($1.70) provide critical support areas if the price breaks down.

Conversely, a breakout above $2.40 would invalidate the bearish scenario and signal renewed bullish momentum.

Key Levels to Watch

• Resistance: $2.40 and $2.50.
• Immediate Support: $2.20.
• Critical Support: $1.98 (0.382 Fib) and $1.70 (0.5 Fib).
• Break above $2.40: Confirms a bullish breakout toward higher levels.
• Break below $2.20: Increases the likelihood of testing $1.98 and $1.70.