Ripple’s XRP has been moving horizontally without a clear direction over the past week. The popular altcoin is trapped between the $3.08 and $3.14 range, experiencing a decline of over 2% weekly. The completion of a triangle formation on January 13 signals an impending breakout. Analysts emphasize the potential for upward movement in the upcoming weeks based on the Elliott Wave Theory, although the possibility of testing support levels and a correction cannot be overlooked.
Critical Levels and Possible Scenarios for XRP
The technical chart of XRP indicates that the completion of the triangle formation is interpreted as the beginning of a new trend. Particularly, the $2.52 level stands out as critical support during declines. A definitive close below this level could lead to a deeper correction in prices. Conversely, if an upward breakout occurs, targets of $4.20 and $5 will be closely monitored.
$0.008085-XRP-Fiyat-Analizi-scaled.jpg” alt=”” width=”2560″ height=”1412″ />According to the Elliott Wave Theory, a five-wave upward movement is expected following the completion of the triangle formation. However, for this scenario to materialize, any corrective movements must be constructive. This means that potential pullbacks should progress slowly and gradually, ensuring that the main trend remains bullish.
Increased Activity Anticipated Next Week
The decline in trading volume over the weekends suggests that XRP will continue to fluctuate around its current levels. Traders are poised to determine a clear direction on Monday as market activity rises.
Specifically, if the $3.14 resistance is surpassed, buyers or bulls are expected to take control. However, if sellers or bears dominate below $3.08, it could signal a short-term decline.
Technical indicators suggest that XRP’s recent consolidation is preparing for a volatility explosion. The Relative Strength Index (RSI) remains neutral while moving averages are positioned close to the price, reflecting a balanced market psychology before any breakout.
