XRP has traded sideways throughout most of the week, with little movement indicating a major shift in trend in the short term. XRP is approaching the end of a triangle pattern, which usually indicates that a decision point is near. The market must now decide which direction to take as XRP is currently stuck in the $3.08-$3.14 range. The price also fell by 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 expect XRP prices to rise in the near future. However, this does not guarantee that the breakout will be immediately bullish. There may be a small dip before the rise, but as long as any pullbacks are corrective in nature (slow, staggered movements), the long-term trend remains up. These corrections are expected to remain above key support levels, especially the $2.52 level.
Key support and resistance levels
The triangle pattern on the XRP chart completed on January 13, marking the end of the current consolidation phase. From an Elliott Wave perspective, this may signal the beginning of a larger five-wave move to the upside. The important support level to watch is $2.52; A break below this level may indicate a shift in market direction, creating greater uncertainty. A decisive break below this support would indicate a possible deeper correction.
On the upside, if XRP manages to break through the resistance, the next target levels to watch are around $4.20 and eventually the $5 mark. These Fibonacci extension levels will give us an indication of price action in the coming weeks.
As the triangle formation nears completion, a breakout is expected soon, but it may take some time to occur. Trading volume tends to be low on weekends, so it is possible that the price will move around key support levels until more decisive moves occur early next week.
