Ripple’s XRP experienced a surge following the launch of the highly anticipated RLUSD stablecoin, briefly touching $2.71. However, the initial momentum has subsided, with the price currently trading at $2.55.
Technical Analysis:
- Support and Resistance: XRP has established strong support around the $2.40 level. A micro-support zone exists between $2.55 and $2.62, though immediate testing of this level is not anticipated.
- Third Wave Dynamics: The market is currently in the third wave of a larger price movement, with a 100% extension already reached. The ideal target for this wave is around $2.81, provided support remains above current levels. A dip below $2.55 would indicate a deeper pullback, although still within acceptable micro-structure parameters.
- Bullish Outlook: The third wave is expected to continue its upward trajectory, followed by waves 4 and 5, potentially leading to a retest of XRP’s all-time high. However, the current structure is delicate, and while price action isn’t as impulsive as previous rallies, support levels are holding firm.
Breakout Potential:
Analyst Josh of Crypto World points to robust support around the $2 level, where former resistance now acts as support. While recent XRP price action hasn’t undergone significant changes, it’s currently experiencing a bullish breakout from a bull flag pattern. This breakout, initiated a few days ago, has seen a surge in bullish momentum with the formation of higher highs and higher lows, a positive price structure indicator.
Price Target:
The price target for this bullish flag breakout is estimated at around $3.80, representing a potential 40% to 60% upside from the breakout point. This target remains valid as the breakout has been confirmed and previous resistance now serves as support.
December 2024, Cryptoniteuae
