XRP has been trading sideways for most of the week, with little movement suggesting a major near-term trend change. XRP is nearing the end of a triangle, which generally indicates that a decision point is near. The market now needs to decide which direction to take as XRP is currently stuck in the $3.08 to $3.14 range. The price is also down more than 2 percent on the weekly chart.
Elliott Wave Analysis for XRP
Using Elliott Wave analysis, a popular sentiment-based method for predicting market movements, analysts predict XRP price rise in near future. However, this does not guarantee that the breakout will be immediately to the upside. There might be a slight decline before a rise, but as long as the pullbacks are corrective in nature (slow, overlapping movements), the long-term trend remains bullish. These corrections are expected to sustain above key support levels, particularly the $2.52 level.
Key Support and Resistance Levels
The triangle pattern on the XRP chart ended on January 13, marking the end of the current consolidation phase. From an Elliot Wave perspective, this could signal the start of a larger five-wave bullish move. The critical support level to watch is $2.52; a break below could signal a change in market direction, introducing more uncertainty. A decisive break below this support would suggest a potential deeper correction.
On the positive side, if XRP manages to break through the resistance, the next target levels to watch are around $4.20 and possibly $5. These Fibonacci extension levels will give us an indication of price action in the coming weeks.
With the triangle formation almost complete, a breakout is expected soon, but it could take some time to materialize. Volume tends to be lower on weekends, so it is possible that price dances around key support levels until more decisive moves occur early next week.