XRP’s price action has seen little change recently, with no significant updates in developments. However, technical analysis indicates a potential reaction occurring at the lower boundary of what could be a triangle pattern forming. Currently, XRP is trading at $2.12, showing a gain of over five percent.
Key Reaction at Lower Boundary
XRP has displayed a slight response to a trend line that has been tested three times. While this trend line holds importance, it has not yet confirmed the formation of a definite pattern. The current movement could be part of a broader wave within a larger Elliott Wave triangle.
Current View: Sideways Triangle in Progress
The analysis in recent weeks suggests that XRP might be forming a wave 4, potentially following a triangle structure. Triangles are delicate patterns that can change unexpectedly, so it is crucial to monitor key levels for any shifts in market structure.
Critical Levels to Watch: Resistance and Support
Support Levels: $1.95 and $1.90 are essential downside levels to monitor.
Resistance Levels: $2.42 is a key level to observe for potential rejection.
The $2.42 level holds significance as it corresponds to the potential C-wave target. Past price patterns indicate that the C-wave often mirrors the length of the A-wave, with the 61.8% extension level playing a vital role.
What to Expect Next
If XRP reaches the $2.42-$2.45 range, it may encounter significant resistance. Moreover, the trend line in this area could impede further upside movement. While there is no certainty that XRP will reach this zone, it is an area of interest to keep an eye on.
A rejection at this level could suggest that the structure is nearing completion, potentially leading to an upward breakout. Conversely, a sharp downward move could shift focus towards a more bearish outlook, with support levels between $1.39 and $1.80 becoming more relevant.