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XRP price is currently in a period of consolidation, following a Wave 4 formation that is respecting a structured technical pattern. This consolidation phase aligns well with the expectations of technical analysts, as the cryptocurrency has recently bounced off a significant support level and is now forming a triangle pattern. This suggests that XRP is undergoing a phase of price compression, where the market is consolidating before a potential breakout in either direction.
The focus of analysts is on the $3.05 resistance level, as a decisive move above this point could signal a significant shift in price momentum, leading to higher targets. Market watchers are closely observing whether XRP can push through this resistance and sustain the move upward.
XRP’s Triangle Pattern Indicates Potential Breakout
According to analyst Casi Trade, XRP is maintaining its support at $2.565 within a Wave 4 consolidation, respecting the triangle pattern. This price action is expected to culminate in a breakout, and traders are watching for signs of momentum building up. If XRP successfully breaks through the $3.05 resistance level, technical analysis suggests that the price could surge towards the $3.57 range. This price level coincides with the 1.0 Fibonacci extension and the upper trendline of the pattern, serving as a crucial test for the continuation of the bullish trend.
However, should the price fail to hold its support at these levels, a retracement could follow, leading to further downside movement. Therefore, the key question for investors is whether XRP can continue its consolidation within the triangle pattern or initiate the anticipated breakout.
Earlier predictions have suggested that XRP could potentially reach $70 in the coming years, bolstering the bullish outlook for the cryptocurrency. This long-term price prediction aligns with increasing market confidence and growing interest in XRP futures. With strong support levels and key resistance ahead, the trajectory of XRP’s price continues to be a major topic of interest for investors and traders alike.
Wave 2 Pullback Expected After Breakout
If XRP manages to break through the $3.05 resistance and reaches new highs, analysts anticipate a Wave 2 pullback as part of the natural progression of Elliott Wave Theory. This pullback is expected to occur within the range of $2.40 to $2.50, depending on how high XRP can rise during this current trend. Wave 2 corrections are common in Elliott Wave patterns and are often seen as an opportunity for traders to re-enter the market before the next bullish wave unfolds.
The key to the next phase will be to monitor the depth of the pullback and whether buyers are ready to step in and support the price at higher lows. If the price retraces and then recovers, it could confirm the start of a new trend cycle. This would signal that XRP’s price has more room to grow, and traders may set their sights on levels that go beyond the previous all-time highs.
Whale Activity and Market Sentiment Shifting
On-chain data is showing significant accumulation by large investors, indicating that XRP whales are positioning themselves for a future price increase. Over the past 24 hours, nearly 1 billion XRP tokens have been accumulated by large investors, signaling confidence in the cryptocurrency’s potential. Analyst Ali Martinez highlighted data from Santiment, which revealed a sharp decline in whale holdings, followed by a notable recovery. This suggests that whales are taking advantage of a recent price dip to accumulate large amounts of XRP, preparing for an upward move.
The accumulation pattern from XRP whales also points to a renewed interest in the asset, particularly among institutional and high-net-worth investors. Their involvement often plays a significant role in influencing market trends, and their activity during the current consolidation phase suggests that they are confident in XRP’s future price potential. If this accumulation trend continues, it could provide additional support for XRP’s eventual breakout past the $3 price target.
Additionally, some whales may have used the recent crypto market crash to their advantage, purchasing XRP at lower prices. This is indicative of a broader strategy to accumulate digital assets during times of market downturns. As Bitcoin fills key CME gaps, altcoins like XRP have followed the downtrend due to their strong correlation with Bitcoin’s price movements. However, analysts suggest that once these gaps are filled, the market could experience a rebound, and XRP’s price could follow suit, further fueling the optimism surrounding its future performance.
