- Analyst’s Elliott Wave analysis suggests XRP could reach $4 if the breakout confirms on the 4-hour and daily charts.
- Bollinger Bands and RSI indicate strong momentum, but XRP must stay above key support at $3.01 to maintain its bullish trend.
- A breakout above $3.4886 could push XRP toward $3.80 and $4, while failure to hold support may lead to a deeper retracement.
XRP is nearing important resistance levels which could lead to a breakout. Dark Defender, a crypto analyst noted that the asset is awaiting confirmation on 4-hour and 1-day time frames. If confirmed, the next short term target is $4, while support remains at $3.07. Steph is Crypto, pointed to a descending wedge formation, projecting a price target of $4.55.
Elliott Wave Patterns Indicate a Potential Surge
Dark Defender’s view is based on Elliott Wave patterns identifying a five wave impulse movement. Wave 1 and 2 have completed, while Wave 3 peaked at $3.3999. The correction into Wave 4 tested the 23.6% Fibonacci retracement level at $2.9980.
The projection suggests Wave 5 could push XRP toward $3.50 to $4.00. A descending corrective trendline has formed from the Wave 3 peak, and recent price movements show an attempt to break above it.
This indicates a possible continuation of the bullish trend. Additionally, the Ichimoku Cloud is acting as support, complementing the positive sentiment. Price remains above the cloud, increasing the likelihood of further gains.
Bollinger Bands and RSI Show Strength
On a daily timeframe, XRP is trading near the upper Bollinger Band at $3.48, suggesting strong momentum but potential overextension. The middle band is at $3.0132, acting as dynamic support. If the price moves toward the lower band at $2.5379, it could indicate a deeper retracement.
The RSI is at 61.53, indicating bullish momentum but is below the overbought level of 70. If RSI rises above 70, a correction may follow, while a drop below 50 could indicate a shift toward bearish momentum.
Price Levels to Monitor for Trend Confirmation
Current price levels indicate a bullish phase, but resistance at $3.4886 remains. A breakout above this level could send XRP toward $3.80 and $4. If the asset consolidates above $3.10 with strong volume, it would support upward momentum.
However, if XRP struggles to break $3.4886, it may retest the $3.01 level. A failure to hold above $3.01 could lead to further downside, testing $2.54. Monitoring RSI movements and trading volume will be essential in assessing whether the uptrend remains intact.