XRP is experiencing a drop of more than six percent, falling below the critical $3 mark. Despite this, analysts anticipate recovery and a new bullish move.
XRP’s Current Market Structure
According to Elliot Wave analysis, XRP’s price movement has shown an impulsive upward pattern, with pullbacks appearing corrective in nature. This suggests a potential third wave of upward movement could unfold soon. The current structure indicates a possible breakout, with $2.76 being a critical support level for maintaining the bullish trend on smaller time frames.
Key Resistance and Support Levels
The larger market pattern, which completed a correction in mid-January, sets the stage for a possible five-wave upward move. However, a breakout above the previous high of $3.40 is essential to confirm the continuation of the bullish trend. If XRP fails to break above this level, the market could test lower support levels between $2.51 and $2.68. This might necessitate an adjustment of the overall market structure.
Optimistic Market Sentiment
Despite the uncertainty, market sentiment remains largely optimistic. If XRP manages to break past the resistance at $3.40, the next major targets are $4.20 and potentially $5. Overall, XRP shows promise, with many traders preparing for a potential breakout in the coming weeks.
Thus, XRP, while experiencing a short-term decline, may be on the brink of new upward movement if it can surpass key resistance levels.
