XRP price continues to consolidate within a Wave 4 formation, adhering to a structured technical pattern that suggests an impending breakout. The top altcoin recently bounced off a key support level and is now forming a triangle pattern, indicating a period of price compression before a potential surge.
XRP Price Triangle Formation Holds
Analyst Casi Trade noted on X (formerly Twitter) that XRP price is maintaining support at $2.565 within its Wave 4 consolidation phase. The altcoin’s adherence to a triangle pattern raises expectations among traders that a breakout is imminent.
Technical analysis highlights the $3.05 resistance level as a crucial barrier. If XRP manages to break past this level, it could gain momentum toward $3.57, aligning with the 1.0 Fibonacci extension and upper trendline. However, failure to sustain support at current levels may lead to further downside pressure.
Market participants are closely monitoring whether XRP will continue consolidating or initiate a breakout. Price compression within this structure often precedes heightened volatility, making the upcoming trading sessions critical.
Wave 2 Pullback Expected After Breakout
If XRP surpasses the $3.05 resistance and reaches new highs, analysts anticipate a Wave 2 retracement before the next upward movement. The expected pullback range is projected between $2.40 and $2.50, depending on the peak of the current trend.
Wave 2 corrections are common in Elliott Wave Theory, offering a re-entry opportunity before the next bullish wave begins. The upcoming milestone for XRP will be determining the extent of the retracement and whether buyers step in to establish higher lows. A breakout followed by a retracement would confirm the beginning of a new trend cycle.
Whales Accumulate as Market Sentiment Shifts
On-chain data reveals that large investors have accumulated nearly 1 billion XRP in the past 24 hours. Analyst Ali Martinez cited Santiment data showing fluctuations in whale holdings, followed by a significant recovery, indicating renewed buying interest.
The accumulation trend suggests that whales used a recent price dip to acquire more XRP, positioning themselves for an anticipated upward move. Institutional investors’ activity in this consolidation phase signals confidence in XRP’s future price appreciation.
Also Read: Ripple Releases 1B XRP as Trump Adds It to US Crypto Reserve—Price Jumps
With strong support levels and rising accumulation, XRP remains poised for a breakout, potentially setting new highs in the coming weeks.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
