XRP’s price has managed to stay above recent swing lows, but its recent rally seems to have fizzled out, entering a corrective phase. Despite some positive price action earlier this week, the market has yet to confirm a breakout. XRP briefly surged from $2.20 to $2.60, but it hasn’t sustained the upward momentum needed for a confirmed breakout. This raises questions about the potential for a continuation or reversal in the short term.
Micro Support Levels and Key Price Zones
A significant support level at $2.39 has been identified as crucial for maintaining XRP’s uptrend. Although the price briefly dipped below this zone, it remains a key level to watch. If the market moves upward in a corrective structure, there’s a possibility that XRP will revisit this support level for a retest before a potential rally. A failure to hold $2.39 could signal further downward pressure on the altcoin.
Triangle Pattern in Play: A Potential Breakout?
The current price action indicates that the triangle pattern (A-B-C-D-E) is still intact, signaling a potential breakout if the pattern completes. XRP briefly exceeded the D-wave high, but this momentum quickly faded. For the pattern to be confirmed, XRP needs to break above the $2.72 resistance level. A failure to do so could lead to an extension of the triangle or a shift into a more complex structure.
Market Sentiment and Bitcoin’s Impact
XRP’s price action has been influenced by the broader cryptocurrency market, with Bitcoin’s recent movements placing downward pressure on altcoins. While XRP has felt some micro-level effects, no critical support levels have been breached, and the market structure remains intact. However, the key invalidation point for the current triangle pattern lies at $1.96. If this level is broken, a major shift in the market’s dynamics could occur.
While an upward breakout is possible, a more complex WXY correction could unfold. In this scenario, XRP might experience a downward move before continuing its upward trajectory. The failure to form a confirmed low suggests that the reversal is not yet in play, keeping traders on edge for any shifts in momentum.
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.
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