XRP finds itself at a crucial juncture, with its price either poised for a massive breakout or possibly marking the end of an internal corrective rally. The scenario could play out in two ways: a bullish continuation to the upside or a corrective pullback. Both scenarios are part of an overall bullish outlook, as XRP could undergo a second wave of correction. At the time of writing, XRP is trading at $3.14 and is down over 2% in the last 24 hours.
Bullish outlook and key support levels:
In the most optimistic case, the price could form a first wave of upside followed by a second wave of pullback which could have already bottomed around $2.79. The important level to watch is the $2.52 mark, which acts as a key support zone. A break below $2.52 would invalidate the bullish scenario and indicate a more bearish outlook, with further downside potential.
Challenges related to an immediate escape:
The current price development is somewhat unclear. Although XRP has held key support levels, it remains below its all-time high, and price action since January 20 has been choppy and overlapping. This suggests that even if the bullish scenario remains intact, there could still be some consolidation or retesting of support before any lasting breakout.
Lateral movement potential:
XRP price may continue to consolidate between $2.50 and $3.40. While this range may be considered “noise,” it is important to monitor the $3.40 level as key resistance. A break above this figure would signal the next bullish leg in this bullish scenario. On the other hand, if XRP fails to break out above the higher level and falls below the $2.52 level, it would indicate that a corrective wave is still underway.
