XRP’s price has been reacting to key support regions, bouncing off important levels multiple times. This recent price action suggests that the low of the correction may be in place, potentially leading to a move higher in the near future. However, before advancing further, another corrective phase could be on the horizon.
Triangle Pattern in the Correction Phase
The current price structure indicates that a triangle pattern is unfolding within a corrective phase that began around December 3rd. While triangle patterns are not the most common corrective structures, they do occasionally appear, especially in wave four corrections. XRP has shown a tendency to form triangle patterns in its price action, with bullish breakouts following these formations in November and early December. This pattern hints that XRP might be in the process of forming another triangle.
Current Consolidation and Breakout Analysis
XRP is currently consolidating above the breakout point from December 1st, indicating ongoing market strength. Maintaining support above this level suggests that the uptrend is still intact. The price has been forming lower highs and higher lows, aligning with the structure of a triangle pattern. Each part of this pattern consists of three-wave movements, indicative of corrective price action.
Key Levels to Watch
Should the price drop below $2.41, it could signal a potential reversal and the formation of a top. This level represents the 50% retracement of the recent rally, making it a critical point to monitor. On the upside, the next resistance level is at $2.72, the B-wave high. A breakout above this level could lead to a test of the December high around $2.90, and potentially even reach the all-time high of $3.30 if bullish momentum strengthens.
In conclusion, the current price action of XRP suggests that a triangle pattern may be forming within a corrective phase. By closely monitoring key support and resistance levels, traders can better anticipate potential price movements in the near future. As always, it is important to stay informed and adapt to changing market conditions to make informed trading decisions.