Ripple’s XRP plummeted below $2.40 in recent weeks, dropping more than three percent. The cryptocurrency, however, seems to be getting support around the $2 level, which still appears to be a strong foundation. The $3 range remains a very important resistance level.
XRP is now consolidating under the $2 and $2.24 level, a crucial area which needs to hold to maintain the bullish outlook. Price movement within this range is key because it helps us know if the cryptocurrency goes up and breaks out or if it does a pullback. These levels have been watched by market participants looking for a breakout or corrective trend in case.
XRP Faces Short-Term Pullback, But Long-Term Bullish Potential Remains
Currently, the price decline, however, cannot prevent a bullish move. This is the trading conditions’ uptrend, which might be the first of a larger wave of higher prices. To make this bullish scenario happen, XRP will have to rise above the resistance at $2.76. A close above this level could secure a new all-time high.
It’s not just possible that XRP is in a corrective phase right now; the more likely possibility is that it’s actually wave 4. If that’s the case, we could have a pullback, and XRP could sell off in a five-wave downward movement.
If the price has a break below the key support levels, it could be the start of the larger correction. In fact, that does not necessarily mean the trend is about to go bearish. It could eventually set the stage for a correction, but once the market stabilizes, there are even higher prices possible.
XRP Forms Bullish Flag Pattern: A Potential Continuation Signal
Resistance levels to look out for are between $2.46 and $2.76, and the support remains between $2.24 and $2.00. Right now, XRP is trading sideways between these important support and resistance levels.
However, should a pullback take place, the support zone between $2.00 and $2.24 could be an attractive place to buy. If the price bounces out of this zone, then it could be the beginning of a third wave push higher in the longer-term bullish scenario.
Crypto World’s Josh stated that XRP could be making a bullish flag pattern, which is typically interpreted as a continuation signal. To be confirmed, the price had to break and cross over the resistance at $2.48 and ideally sustain a new high at $2.62. XRP will taste a 100+% gain if it breaks through these levels.
In the event that the price is rejected, though, a close watch must be placed on support levels. Immediate short-term support is at $2.24, support is at $2.00, and it is just under $1.95. The short-term trend looks a little bearish; however, these minor pullbacks are actually part of a bull market. In view of the above, drops should not be treated as a trend reversal but as interruptions within a broader upward trend fashion.
Conclusion
Overall, the market outlook retains its bulls with key supports looking like a potential avenue for investors to play; XRP’s price action has seen some short-term bumpiness, but that is it for the time being, under the current bullish context. If the market stabilizes, the price gains could still be higher after a correction, but a breakout above the $2.48 level would still establish the stage for a charging move in prices.
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