Ripple's XRP has increased by more than 1% and is trading at $2.45, following a triangle pattern, which suggests the possibility of higher prices in the short term.
The Ongoing Correction and Market Structure
Since topping at around $2.90 a month ago, the market has been in a correction. This correction consists of three waves up and three down, typical of a corrective phase. While a breakout is possible, the most probable scenario suggests another higher low, forming part of the Elliott Wave triangle pattern.
Key Support and Resistance Levels to Watch
The support area for XRP is defined by Fibonacci retracement levels, located between $2.28 and $2.27. This zone may provide weak support. Importantly, the primary invalidation point for this structure is a break below $1.95, the previous swing low from December 20th. To invalidate the triangle to the upside, XRP needs to break above $2.70, which would signal a continuation of the bullish trend.
Outlook for XRP: Higher Prices Likely, but Caution is Key
While there are no minimum requirements for the E-wave, a shallow correction, similar to previous triangles in XRP’s history, is possible. The focus remains on higher prices, and the resistance levels to watch are at $2.55, $2.62, and potentially $2.72. A break above the $2.72 level could lead to the next phase of price discovery, possibly testing the previous all-time high around $3.30.
Despite the ongoing correction, the outlook for XRP remains positive if key resistance levels are surpassed.
