XRP acted sideways for most of the week, with little movement that points to a large trend shift in the short term. XRP is approaching the end of a triangular pattern, which usually indicates that a decision point is near. The market must now decide which direction it is going, since XRP is currently stuck in the range of $ 3.08- $ 3.14. The price has also fallen more than 2 percent in the weekly graph.
Elliott Wave analysis for XRP
With the help of Elliott Wave analysis, a popular, sentiment-based method for predicting market movements, Analysts expect higher prices for XRP in the near future. However, this does not guarantee that the outbreak will immediately go up. A small dip could occur before an increase would take place, but as long as any withdrawals are corrective of nature (slow, overlapping movements), the trend remains in the longer term bullish. These corrections are expected to remain above the most important support levels, especially the level of $ 2.52.
Most important support and resistance levels
The triangular pattern on the XRP graph was completed on January 13 and marked the end of the current consolidation phase. From the Elliot Wave perspective, this could mean the beginning of a larger movement in five waves up. The critical support level to keep an eye on is $ 2.52; A breakthrough under that could signal a shift in the direction of the market, which would result in more uncertainty. A decisive breakthrough under this support would indicate a possible deeper correction.
On the positive side: if XRP successfully breaks the resistance, the following target levels are around $ 4.20 and finally the $ 5. These Fibonacci extension levels will give us an indication of the price movement in the coming weeks.
Now that the triangle formation is approaching its completion, an outbreak will soon be expected, but it can take some time before it manifests itself. The volume is usually lower during the weekend, so it is possible that the price on the most important support levels can fluctuate until more decisive movements will take place early next week.