Ripple’s XRP is currently trading in the green zone as the price continues to move in a triangle pattern, a formation that signals market indecision. It is difficult to predict whether this trend will break higher or lower, but this type of consolidation is often the precursor to a major move in one direction or the other. Currently, the price remains within a defined range and the market is trying to determine its next move.
Sideways action may seem boring, but it is healthy market behavior, allowing the price to strengthen before moving higher. As long as XRP remains above key support levels, particularly the $2.04 price level, the uptrend remains intact. A break above this consolidation phase could lead XRP to test higher levels, with $3 being a potential next resistance level, and further towards all-time highs.
Price Levels to Watch
$2.04 support: This is a critical level for XRP. If the price maintains above this level, the bullish scenario remains intact. A decline below $2.04 would invalidate the near-term bullish outlook and open the door for a bearish reversal.
Resistance at $3: If the price increases, $3 will be an important resistance zone. A successful breakout above this level could pave the way for XRP to reach its all-time high.
Bearish scenario
If XRP breaks below the $2.04 level, the bearish scenario becomes more likely. In this case, the price could move lower, targeting the support zone between $1.8 and $1.79. A sustained decline below $2.04 would suggest that the market is preparing for a larger correction, and further decline could follow.
At the time of writing, XRP is trading at $2.17 and is up more than one percent in the last 24 hours.
