XRP is currently showing signs of potential trend reversal, despite the ongoing influence of bearish divergence on its price.
Current XRP Market Situation
Over the past 24 hours, XRP briefly dipped below the $2.25-$2.30 support range, but as of now, it has not confirmed a daily close below this level. While the bounce offers a glimmer of hope for bulls, the bearish divergence remains an influencing factor. On larger time frames, the bearish trend is still visible, and the market might face further challenges, especially if the larger bearish pattern continues to play out.
Key Support and Resistance Levels
XRP is currently testing resistance levels on the micro scale, specifically between $2.30 and $2.46. This zone is critical as it represents a pivot point between potential bullish and bearish scenarios. A break above this resistance could signal the start of a new bullish phase, while a failure to break through may indicate further downside risk. The immediate support level that traders are watching is at $1.95. If the price drops below this level, the market may face further corrections. However, if support at $1.95 holds, there's a good chance that the bullish momentum could resume. Should the price drop further, the next key support level lies at the February low of $1.77.
Bullish Scenario and Potential Price Targets
If XRP can successfully break above the $2.46 resistance, it could set the stage for a significant bullish movement. In the best-case scenario, this could lead to a price surge toward the $5 to $6 range, offering a substantial reward-to-risk ratio for investors. This would mark the start of a new uptrend, ideally following a five-wave pattern that would confirm the bottom is in place. If XRP breaks through the $2.83 resistance level, it would provide more confidence that the bearish scenario is invalidated and the market is in a strong uptrend.
The current XRP market situation remains uncertain, with outcomes depending on whether key resistance levels can be broken and support held. Traders should consider all aspects to make informed decisions on their positions.
