Wave Structure and Support Levels
The XRP remains within a long-term range, trading just above the 38.2% Fibonacci retracement level. This technical zone is often associated with wave 4 corrections in the Elliott Wave Theory. At the time of writing, XRP has declined by over 2% to settle at $2.20.
The current correction is viewed as part of a larger wave 4 correction. From this zone, a new bullish momentum is possible, with the XRP having chances to form a new all-time high. However, a deeper retracement cannot be ruled out. In case of further decline, a support between $1.22 and $1.34 would become the next critical zone to watch closely.
The $1.21 level remains a crucial pivot point. A break below this threshold would significantly weaken the bullish scenario, paving the way for a more bearish outlook.
Outlook and Forecasts for XRP Token
As long as XRP maintains higher support levels, the potential for a bullish breakthrough remains on the table. In this scenario, potential targets include $5.00, $5.65, and even $6.60. While speculative discussions have mentioned the possibility of a surge up to $10 or more, such projections are considered low-probability outlier cases without strong technical support at this stage.
From a technical standpoint, XRP is still undergoing a correction. By observing the Fibonacci Bollinger Bands (FBB), it is still in the lower part on the 12H and daily charts. Therefore, XRP will need to make a clear breakthrough above the $2.4 resistance for a significant uptrend in the medium term.
In the short term, XRP could benefit from the momentum of BTC currently around $95,000. As a result, XRP could surge between $2.32 and $2.4 in the coming days.
In the 2H timeframe, the previously mentioned bullish trendline has been liquidated, triggering a strong hands/weak hands shift. This indicates that a short-term rebound to $2.35 is highly likely.
Is It Time to Buy Now ?
However, the liquidity zone between $1.5 and $1.28 has yet to be touched. In other words, the probabilities of a rebound and a new high for XRP are lower than on most other tokens.
Similar to Cardano, XRP has been one of the tokens to withstand the market downturn the longest in recent months. It could, therefore, undergo this downturn in the coming weeks if $2.4 is not broken and maintained as support.
In conclusion, despite fluctuations, various scenarios are still possible for XRP, depending on the evolution of crypto market trends in the coming weeks.
