- XRP eyes $2.24 support after breakout from inverse head & shoulders
- Key Fibonacci support levels at $1.90 and $1.55 remain intact
- Wave 3 projection points to possible rally toward $6.50 and $9.50
Elliott Wave analysis indicates that XRP is at a critical point as it finishes a Wave 2 correction. The cryptocurrency continues to test vital Fibonacci retracement levels near $1.90 and $1.55. Market indicators point to a massive price increase after momentum builds and XRP breaks resistance.
Support and Resistance Define XRP’s Price
The $1.90 price level serves as major support and matches the 0.5 Fibonacci retracement. However, the $1.55 support level, which aligns with the 0.618 retracement, is the most crucial final support. The price needs to remain stable at these zones to confirm the end of Wave 2.
XRP faces major resistance at $2.24, which matches the 0.382 Fibonacci retracement level. XRP surpassed the key price levels, which turned its former resistance zone into new robust support. If XRP holds above this line, it could reduce chances for a potential correction.
Inverse Head and Shoulders Signals Breakout
The XRP price chart has established a clear inverse head and shoulders pattern, which indicates a major bullish reversal pattern. The price surpassed the neckline at $2 and continues to consolidate. This price behavior indicates further upward movement.
Market participants continue to analyze this price structure and increase in volumes, which further reinforces a potential breakout. The pattern shows bullish control, characterized by higher lows and stable buying pressure. These technical indicators point to an increased market momentum for XRP price.
If XRP holds above this support level, it could strengthen its bullish movement. A successful retest of $2 validates short-term bullish price predictions. This technical formation could indicate the potential start of an upward price movement.
Wave 3 Targets, Bullish Fibonacci Extensions
The Elliott Wave theory predicts XRP is near the Wave 3 impulse if it maintains its current position. Historically, Wave 3 drives the fastest and highest price appreciation in price cycles. Analysts expect Wave 3 to reach between $6.50 and $9.50.
A major price target stands at $6.50, which matches the 1.618 Fibonacci extension from the recent price bottom. An aggressive price rise could lead XRP to reach $9.50, which matches the 2.618 extension level. Under favourable market conditions, XRP may surge to $12, which corresponds with the 3.618 extension.
The increased momentum indicates that the correction phase could end soon. As at press time, the price of XRP traded at $2.07