Ripple’s XRP appears to be breaking out of a prolonged corrective phase, signaling a potential bullish reversal. After months of price swings and consolidation, technical indicators now suggest that momentum is shifting in favor of buyers. However, XRP is still struggling to hold above $2.50, a key level that could define its next move.
XRP Price Action: Signs of Recovery
On the 4-hour chart, XRP has followed an extended WXY correction pattern, which began after reaching its December peak of $2.90. After a brief attempt to rally in mid-January, where it hit $3.40, XRP suffered a deep pullback, touching a low of $1.77 on February 3.
However, strong demand emerged at this level, leading to a sharp 26% rebound, pushing the price back above $2.25. This bounce suggests that the correction phase could be ending, with the market now entering the early stages of a new bullish cycle.
A critical sign of strength is XRP’s breakout above the descending resistance trendline, a major barrier that has capped upside movements for weeks. If XRP can hold this breakout, it would confirm a shift toward bullish momentum.
Key Resistance & Support Levels
According to Fibonacci retracement levels, XRP has reclaimed $2.45, aligning with the 0.236 retracement level. The next major resistance points are:
- $2.90 – A key structural high and 0.786 Fibonacci level
- $3.08 – A psychological barrier and the 1.0 Fibonacci retracement
If XRP fails to hold above $2.45, it could see a retest of $2.26, or even drop to $1.95, where it must find support to maintain its bullish outlook.
Elliott Wave Analysis & Price Projections
On the 1-hour chart, XRP appears to be forming an early impulsive wave structure, supported by a breakout from a symmetrical triangle pattern. If this holds, XRP could rally toward its next Fibonacci extension targets:
- $3.59 – 1.618 Fibonacci extension
- $4.00 – Potential Wave (v) target
However, a major hurdle remains at $2.77, which aligns with the 0.618 Fibonacci retracement level. A breakout above $2.77 could trigger an acceleration toward $3.08, while a rejection could lead to a short-term pullback toward $2.45 or $2.26.
Elliott Wave projections suggest that XRP is currently in Wave (iii) of an impulsive rally, which could extend toward $3.60. This would likely be followed by a brief correction in Wave (iv) before a final push toward $4.00 in Wave (v).
What’s Next for XRP?
- Bullish Scenario: If XRP holds above $2.45 and breaks through $2.77, it could confirm a strong bullish trend, leading to a rally toward $3.60 and beyond.
- Bearish Scenario: If XRP fails to sustain above $2.45, it could see another correction, with $2.26 and $1.95 acting as key support zones.
For now, XRP’s breakout from descending resistance is a positive sign, but sustained buying pressure is needed to confirm a long-term trend reversal. Traders should watch $2.77 closely—a breakout could mark the start of a major move toward new multi-month highs.
