XRP Eyes $3 Breakout – Will the Final Wave Spark a Rally?

• The corrective wave in XRP is nearing completion, with experts targeting $1.97 as support.
•  Analysts believe a breakout above $3 might signify a bullish reversal.

XRP price action has been ranging inside a symmetrical triangle, a sign of market indecision. Whereas investors are pulling funds from exchange-traded cryptocurrency products. And they are actively seeking XRP as one of the few desirable assets. This is indicative of increasing confidence in its long-term prospects even during volatility.

Technical charts indicate a break-or-make point for XRP’s price action. Elliott Wave theory predicts that the asset has reached a break-or-make situation, with Fibonacci retracement levels as the critical signs of potential direction. Currently, the price is behaving against the 0.236 Fibonacci retracement level at $2.53. If XRP maintains support, analysts predict the beginning of wave (iii), targeting $3.15 and possibly $3.67. However, if XRP fails to hold this level, it may decline, with $2.29 and $1.95 serving as critical support levels.

XRP Price Analysis Sees Consolidation as Final Wave Comes to an End

Short-term momentum indicators indicate a likely reversal. The Relative Strength Index (RSI) on the 1-hour chart displays a bullish divergence, indicating that bearish momentum may be running out of steam. If XRP breaks above $2.72, analysts believe this would further validate the bullish outlook. They are convinced that such a breakout would confirm stronger upward momentum. Price action would then align with a larger move to the upside. Conversely, a fall below $2.29 would discredit this view and allow for further decline.

Stepping back, the 4-hour chart indicates that XRP is still in a corrective channel typical of a Wave 4 consolidation. This stage tends to infuriate traders through choppy price action, but analysts point out that the overall wave structure is still intact. The important resistance levels to pay attention to are $2.82 and $3.00, with a breakdown above these levels holding XRP within the anticipated corrective range. But if XRP can break through $3, it might be a sign that the correction is over and a much bigger move is about to begin.

According to CasiTraders, who is monitoring the price action has convinced that XRP is in the last phase of its corrective wave. The recent breakdown is consistent with what was expected, with XRP creating the last Wave 5 of the C wave down. The estimated ultimate support is close to $1.97, with $2 being a major psychological level. The higher timeframes are registering bullish divergence, suggesting a possible reversal of the trend. The bearish pressure seen in recent weeks has run out of steam significantly. This validates the belief that the bottom is near.

This aligns with the recent Bitcoin trend because BTC has tested its 0.382 Fibonacci level of support, which implies that the larger market cycle is getting close to culmination. Bitcoin will consolidate and initiate a relief rally when XRP will catch up soon.

As the market approaches this critical juncture, investors are awaiting confirmation. A breakout above $3 could be the catalyst for a larger uptrend, perhaps to previous all-time highs. Until a decisive move occurs, however, investors are in waiting mode, anticipating the market to provide the next clear indication.