After weeks of correction, XRP is stabilizing on a major technical support level that could dictate the trajectory in the coming weeks. Traders are now eyeing two critical levels: a close above $2.22 to confirm the bullish trend or a failure to hold $2.17, risking further declines. The question remains: Are we witnessing the formation of a sustainable floor before the onset of the infamous Elliott Wave 5?
XRP is currently trading within a tight range that has captured the full attention of technical analysts. The $2.17 threshold represents the immediate support level that absolutely must be monitored. This level has already been tested multiple times in recent days, demonstrating the presence of institutional buyers ready to defend this zone.
If the price manages to hold above this bottom, it would confirm the market’s resilience despite recent selling pressure. Conversely, a clear break below $2.17 would open the door to a pullback toward lower support zones, potentially around $2.00 or even $1.85.
The key resistance level sits at $2.22. A daily close above this threshold would constitute a major bullish signal for traders anticipating the start of Wave 5 according to Elliott Wave Theory. This breakthrough would indicate a market structure change and could attract significant new buying flows.
Elliott Wave analysis enthusiasts are closely observing XRP’s behavior. According to this theory, markets move in cycles of five impulsive waves followed by three corrective waves. XRP has currently completed its fourth corrective wave and would be positioning itself to begin the fifth wave, generally the most explosive.
This perspective explains why so many investors are watching these levels with attention. Wave 5 often represents the opportunity for substantial gains, as it frequently coincides with an acceleration of bullish momentum and increased market participation.
However, to validate this scenario, XRP must imperatively break through the $2.22 resistance with substantial trading volume. Without this confirmation, the risk of a false breakout remains present, which could trap overly optimistic buyers.
Beyond pure technical analysis, several fundamental factors are currently influencing XRP’s price. Regulatory developments surrounding Ripple continue to play a determining role in investor perception. Each announcement concerning the outcome of the litigation with the SEC triggers significant price movements.
The general crypto market sentiment also remains a crucial factor. When Bitcoin and Ethereum show signs of weakness, altcoins like XRP often suffer amplified selling pressure. Conversely, a broader market recovery could serve as a catalyst for the long-awaited breakout.
Current trading volumes suggest an accumulation phase rather than capitulation. Whales appear to be taking advantage of this consolidation to strengthen their positions, which could fuel the next bullish move once the price compression is resolved.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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