XRP Price Analysis: Is a Significant Move on the Horizon?

After days of sideways trading, XRP seems poised for a noteworthy price shift amidst uncertain broader market conditions.

The asset is nearing the completion of an ABC correction pattern on the daily chart, with the Relative Strength Index (RSI) approaching oversold territory, as noted by Dark Defender in a recent analysis.

> “XRP is close to finalizing the ABC correction pattern in the daily time frame, considering the lowest RSI figures. RSI is close to the oversold area.”

Historically, such conditions have preceded strong rebounds, with potential upside targets ranging between $5 and $8.

XRP’s Path to a Breakout

Currently, XRP is holding key support between $1.88 and $1.91 and has been trading within a corrective structure, but bullish reversal signs are emerging.

The initial upward wave could push the price towards $3, where a successful breakout would validate bullish momentum. If XRP clears this level, the next significant target aligns with $5.85, according to Fibonacci projections.

Beyond this, the Elliott Wave formation suggests that XRP could escalate even higher, with Wave 3 likely testing $5.85 and Wave 5 potentially marking the final leg of the rally, sending prices towards $8 in an extended bullish phase.

Key Levels to Watch

XRP’s immediate support zone remains between $1.88 and $1.91. On the upside, resistance levels include $2.44, $2.99, and $5.85, with $2.99 acting as a crucial breakout confirmation level.

A sustained move above this range would reinforce the bullish outlook and heighten the likelihood of XRP entering its next major uptrend.

Short-term Risks Persist Despite Bullish Projections

Despite the positive outlook, short-term risks are still present, with technical and on-chain data suggesting potential downside before a breakout occurs.

Ali Martinez highlighted that XRP risks dropping below the critical $2 support level, with a potential decline to $1.60 if selling pressure intensifies. On-chain analytics indicate that large holders have offloaded over 370 million XRP in just four days, signaling a shift in sentiment.

Data from the derivatives market, sourced from CoinGlass, shows a slight bearish trend, highlighted by a 1.11% decline in open interest and a 37.71% drop in options volume, pointing to reduced speculative activity.

Furthermore, significant long liquidations totaling $9.52 million in the past 24 hours indicate that bullish traders are being forced out of their positions, compounding the downward pressure despite optimism about a potential spot XRP ETF approval.

Although long-to-short ratios remain favorable for longs, the failure to sustain higher prices denotes the current bearish sentiment within the XRP market.

Regulatory challenges continue to affect XRP’s outlook. While firms like Coinbase, OpenSea, and Robinhood have seen SEC charges dropped, Ripple faces ongoing legal scrutiny, generating uncertainty that has weakened investor confidence and stalled market momentum.

Current Price Analysis

As of press time, XRP is trading at $2.23, down 17% on the weekly chart. Declining futures demand and prevailing bearish sentiment contribute to overall market uncertainty.

The asset’s short-term direction remains uncertain, heavily dependent on the approval of a spot XRP ETF and the resolution of Ripple’s ongoing SEC case.

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