Ripple‘s XRP has experienced a notable increase of over 8% in the past day, currently trading at approximately $3.10. Following a corrective phase believed to have concluded in mid-January, some market participants speculate that a fifth wave rally could be imminent. However, key resistance at $3.40 must be surpassed for this positive momentum to continue, while the support zone between $2.50 and $2.91 remains critical, as a breach could lead to a drop towards $1.96.
What Do Current Price Trends Indicate?
The recent price action of XRP can be analyzed using Elliott Wave Theory. It is suggested that after completing its fourth wave correction on January 13, XRP is now gearing up for a potential fifth wave rally. Nevertheless, the second wave remains unfinished, necessitating sustained trading above $3.40 to confirm a bullish outlook. If this level is crossed, the altcoin’s focus will shift to reaching between $4.20 and $4.50.
What Are the Key Trading Levels to Watch?
Throughout January, the support zone of $2.50 to $2.91 has faced testing twice. Following a response on January 20, the lack of sufficient buying pressure is alarming. Close attention should be paid to the $3.14 resistance mark, while a dip below $2.52 could indicate an extension of the fourth wave and a potential slide down to $1.96.
– XRP’s price must hold above $3.40 for continued bullish momentum.
– The target range of $4.20-$4.50 is significant if the $3.40 resistance is overcome.
– A close below $2.52 could initiate deeper corrections, necessitating vigilance on new support levels at $2.32 and $1.96.
– Volume should accompany upward moves to ensure sustainability.
Market participants are advised to remain alert to these levels and adjust their strategies accordingly, emphasizing risk management in their trading decisions. The dynamics surrounding XRP’s price movements continue to capture the attention of traders as they navigate this volatile environment.
