XRP Price Analysis: What’s Next for Ripple’s Native Token?
XRP is currently experiencing a period of consolidation after a series of volatile movements in the market. Despite a sharp rally followed by a quick pullback, the price of XRP is now trading sideways, indicating a potential pause before the next significant move.
Weekly Chart Analysis
On the weekly chart, XRP is still in a long-term uptrend, holding above key support levels around $2.90 to $3.00. The cryptocurrency continues to form higher lows and higher highs, maintaining its bullish momentum. However, there is a bearish divergence starting to form, which could suggest temporary weakness if confirmed.
The next major resistance levels for XRP are between $4.33 and $4.72. Before reaching those levels, the token will need to reclaim $3.25 and push towards $3.84, a crucial area in the current wave structure.
Daily Chart Overview
On the daily chart, XRP recently lost support around $3.40 and dropped to the $2.90 range before quickly bouncing back. This indicates that buyers are actively defending this support zone. The $3.30–$3.40 range has now turned into short-term resistance, and a successful reclaim of this level could signal a potential trend reversal and higher price movement.
Technically, XRP is currently moving within a corrective pattern. There is a possibility of an ABC correction, where wave C could potentially dip lower before the next upward wave begins. As long as the price remains above $2.75, the bullish structure remains intact. However, a break below $2.75, or worse, $2.65, could weaken the bullish case and lead to a deeper correction.
Future Outlook
Despite some potential short-term challenges, the overall market sentiment for XRP remains stable. If the token manages to break above $3.25 in the near future, it could spark a fresh rally towards the $3.80–$4.30 range. On the other hand, if XRP fails to surpass this level, more sideways movement or a final dip could be on the horizon.
In conclusion, XRP is currently navigating a consolidation phase, with key support and resistance levels to watch for potential price movements. Traders and investors should monitor the market closely for any signs of a breakout or reversal in the coming days.