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$XRP has been showing resilience, holding up well despite the ongoing market correction. Although the short-term price action appears messy, it’s important to understand that $XRP is currently experiencing a local pullback within a broader corrective phase. While the market is consolidating, this creates an interesting scenario for possible future moves.
Triangle Pattern Nearing Completion
The key chart development for $XRP is the triangle pattern that has been in play since December 3. After more than a month of price action, the pattern could soon complete, triggering a price move. Whether this breakout is to the upside or downside remains to be seen, but the next move could happen at any moment.
Short-Term Price Action and Key Levels
In a bullish scenario, $XRP could see an upside breakout. However, it may still dip lower before completing the triangle pattern. On the other hand, the bearish scenario suggests a deeper pullback before confirming a breakdown. While a move down looks more like a corrective pullback, it could still present an opportunity for consolidation before an upside breakout.
Key Support and Invalidation Levels
The critical support area to watch lies between $2.29 and $2.23. If $XRP breaks below $2.29, it could test the key invalidation level at $1.96, which corresponds to the swing low from December 20. At the time of writing, $XRP is trading at $2.33 level and is up by more than two percent in the last 24 hours.
Fibonacci Levels to Watch
Before testing the $1.96 level, $XRP must navigate several key Fibonacci levels. These levels, between $2.23 and $2.24, are important to watch for signs of a potential bounce or further decline. A strong reaction at these levels would provide more clarity on whether $XRP is setting up for a breakout or breakdown.
Breakout Confirmation Levels
For an upside breakout, $XRP needs to break above the green line at $2.50. This would be the first confirmation level of a breakout. However, to fully confirm the breakout, $XRP must surpass the high of the D-wave.