Ripple (XRP) has reemerged as a focal point in the cryptocurrency markets, showing strong signs of momentum following a significant price recovery. After a prolonged corrective phase, XRP is now testing a critical descending resistance zone—a pivotal moment that could determine the next major directional move. With technical indicators aligning across multiple timeframes, traders and investors are closely watching for confirmation of a potential bullish continuation.
This analysis dives deep into XRP’s current price structure, examining key patterns, Fibonacci confluences, and Elliott Wave developments that suggest the foundation for a new upward impulse may be forming.
XRP 4-Hour Chart: End of Correction, Start of New Impulse?
The 4-hour chart reveals a comprehensive corrective structure that appears to have concluded, paving the way for a new bullish phase. Over recent weeks, XRP formed an extended WXY correction, a complex multi-wave pattern commonly observed before strong trend resumptions. The price found solid support at the $1.95 level—a zone that has repeatedly acted as a demand area in prior cycles.
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Notably, the final leg of this correction ended in a five-wave diagonal, a structure often seen at the conclusion of bearish moves. This type of pattern typically precedes reversals, especially when followed by strong volume and momentum shifts. The subsequent rebound confirms renewed buying interest, with XRP now challenging a previously established descending trendline.
This trendline, which served as resistance during earlier price declines, now represents a key breakout zone between $2.31 and $2.57. A decisive move above this range would signal the start of a larger-degree bullish impulse, validating the end of the correction.
Technical Indicators Confirm Shift in Momentum
The Relative Strength Index (RSI) has climbed out of oversold territory, currently hovering around neutral-to-positive levels. This reflects increasing buying pressure and reduced selling exhaustion. Additionally, the formation of a descending wedge—a classic bullish reversal pattern—was confirmed when price broke above its upper boundary.
While these developments are encouraging, sustainability above $2.31 is crucial. Failure to hold this level could invite another pullback toward $1.95–$2.00. However, as long as higher lows continue to form, the overall bias remains constructive.
Elliott Wave Analysis: Is Wave (iii) Approaching?
Zooming into the 1-hour chart provides finer detail on short-term wave dynamics and potential entry zones for traders positioning for the next leg up.
An emerging five-wave impulse structure appears to be taking shape, consistent with Elliott Wave principles. The initial wave—labeled (i)—has completed, followed by the current wave (ii), which is unfolding as a corrective retracement.
Wave (ii) is expected to find support within the $2.07–$2.17 range, aligning with key Fibonacci retracement levels:
- 0.50 retracement at $2.12
- 0.618 retracement at $2.07
These levels have historically acted as strong support zones during uptrends, making them high-probability bounce areas if tested.
A successful reversal from this region would confirm the start of wave (iii)—typically the strongest and most extended leg in an impulse sequence. Based on Fibonacci extensions, wave (iii) could target:
- $2.57 (1.272 extension) – immediate resistance
- $2.77 (1.618 extension) – primary short-term target
- Followed by $2.94, potentially marking the end of wave (v)
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Bullish Confirmation vs. Bearish Risk
To maintain the bullish outlook, two conditions must be met:
- Price must respect support at $2.07 or higher.
- A clean breakout above $2.57 should follow with strong momentum.
If XRP fails to hold above $2.07, it risks dropping back toward $1.95—invalidating the current impulse scenario and suggesting further consolidation or downside correction.
However, so long as the price maintains a structure of higher lows and rising momentum, the path of least resistance remains upward.
Key Support and Resistance Levels to Monitor
Understanding critical price zones enhances decision-making for both short-term traders and long-term holders. Here are the most important levels to watch:
- Immediate Resistance: $2.31 – Breakout confirmation level from descending trendline
- Key Resistance: $2.57 – 1.272 Fibonacci extension and psychological barrier
- Short-Term Target: $2.77 – 1.618 Fibonacci extension, likely peak of wave (iii)
- Immediate Support: $2.12 – 0.5 Fibonacci retracement level
- Critical Support: $2.07 – 0.618 Fibonacci retracement, must hold for bullish case
- Invalidation Zone: Below $1.95 – negates current impulse structure
Traders should use these levels to set strategic entries, exits, and stop-loss placements based on their risk tolerance and time horizon.
Core Keywords and Market Context
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Ripple XRP, XRP price prediction, XRP technical analysis, XRP resistance, XRP support, Elliott Wave XRP, Fibonacci retracement XRP, and XRP breakout.
These terms reflect high-volume queries from investors seeking actionable insights on XRP’s future direction, particularly amid growing speculation about regulatory clarity and institutional adoption.
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Frequently Asked Questions (FAQ)
Q: What is the significance of the $2.31–$2.57 resistance zone?
A: This range marks a confluence of technical factors—the former descending trendline and the 1.272 Fibonacci extension level. A breakout above this zone would confirm a shift from correction to impulse mode.
Q: Can XRP reach $3 in 2025?
A: If current bullish momentum continues and wave (iii) extends fully, $2.94 becomes achievable in the short term. Reaching $3+ would require sustained institutional inflows and favorable macro conditions.
Q: What happens if XRP drops below $2.07?
A: A close below $2.07 increases the likelihood of a deeper correction toward $1.95. It would also cast doubt on the validity of the emerging impulse wave.
Q: How reliable is Elliott Wave analysis for XRP?
A: While subjective, Elliott Wave theory has historically provided valuable context during trending markets. When combined with Fibonacci tools and volume analysis, it enhances predictive accuracy.
Q: Is now a good time to buy XRP?
A: From a technical standpoint, dips near $2.07–$2.12 offer favorable risk-reward entries if the broader structure remains intact. Always assess personal risk tolerance and market context before entering positions.
Q: What triggers the next major move in XRP?
A: A confirmed breakout above $2.57 with strong volume would trigger the next leg up. Alternatively, failure at resistance could lead to sideways consolidation before another attempt.
Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.