The XRP market has been experiencing some sideways movement recently, leaving analysts eager to see whether a breakout or a deeper pullback is on the horizon. Let’s take a closer look at the current chart patterns and what potential outcomes could be in store for XRP in the short and medium term.
Short-Term XRP Price Action
XRP recently faced a minor pullback, in line with the overall cooling trend seen in the crypto market. The price dipped below a key retracement level but managed to find strong support around the $2.30 mark, a level that analysts had been closely monitoring. This price range between $2.30 and $2.34 acted as a safety net, with XRP rebounding from the lower end of this zone.
However, if the price starts closing daily candles below $2.30 and struggles to reclaim this level promptly, the likelihood of further downside increases. In such a scenario, the next significant support level to watch would be around $2.10 to $2.15.
Is the Bullish Trend Still Intact?
Despite the recent pullbacks, the overall trend for XRP remains bullish at the moment. The price continues to form higher highs and higher lows, indicating an upward trend. The current market movement seems more like a temporary pause in the bullish momentum rather than a complete trend reversal.
In terms of resistance, immediate pressure is seen at $2.44, with a more crucial resistance zone lying between $2.55 and $2.62. Crossing above these levels would be a critical step for the bulls to regain control of the market.
A Possible Inverse Head and Shoulders Forming?
Interestingly, if XRP retraces towards the $2.10–$2.15 range and bounces from there, it could potentially set the stage for a significant inverse head and shoulders pattern on the daily chart. This classic bullish formation often signals a major trend reversal if confirmed.
While this pattern is not confirmed yet and remains speculative, if it does materialize and XRP manages to break above the golden pocket retracement zone, it could pave the way for a strong rally. In fact, should the pattern play out entirely, analysts suggest that XRP could target levels beyond $3, potentially reaching new all-time highs.
Looking ahead, some analysts are considering a scenario involving a five-wave decline structure unfolding from the recent high. If this scenario plays out, XRP may currently be in a Wave 2 retracement phase before potentially testing major support levels once again.
Key micro-resistance levels to monitor in this scenario include the $2.35 to $2.44 range. A rejection at these levels could maintain downward pressure in the upcoming trading sessions.
In conclusion, the XRP market is currently at a critical juncture, with various potential outcomes on the table. Traders and investors will need to closely monitor key levels and chart patterns to navigate the market effectively in the short and medium term.