XRP Analysis: Bulls Defend Key Support

What to Know:

• XRP is testing key Fibonacci resistance around $2.09 after a recent pullback, with its next move hinging on support at $2.02.
• Broader market analysis using Elliott Wave theory suggests potential scenarios for XRP, dependent on holding support levels.
• Institutional investors should watch these technical levels for potential entry or exit points, as XRP navigates short-term bearish signals amid medium-term gains.

XRP is currently trading around $2.06, showing minor gains amid recent volatility. The digital asset faces a critical juncture as it tests key resistance levels while attempting to maintain support. Market participants are closely watching XRP’s ability to hold its ground, especially given the broader context of recent price fluctuations and technical indicators.

Fibonacci Levels Define XRP’s Trading Range

XRP’s price action is currently confined within a well-defined Fibonacci retracement range, as observed on TradingView charts. After pulling back from the upper boundary near $2.41, buyers intervened before the price could test the 0.618 Fibonacci level at approximately $2.02. The immediate price direction hinges on whether XRP can maintain this support and initiate an upward reversal.

Overhead resistance begins at the 0.5 Fibonacci level around $2.09. Failure to reclaim the $2.09–$2.17 zone could lead to renewed downside pressure, with the next support level at the 0.618 retracement, followed by deeper support near $1.91. A breach of this level could expose the lower demand area around $1.77, marking the base of the Fibonacci structure.

The True Strength Index (TSI) remains elevated but is sloping downward, indicating a cooling of momentum rather than outright weakness. This suggests XRP is consolidating after a strong impulse move, with the next directional break likely occurring once momentum resets or reaccelerates. For institutional investors, these levels represent potential areas of interest for strategic positioning.

Elliott Wave Scenarios and Key Support Levels

Analysis using Elliott Wave theory suggests XRP’s market action is currently subdued, with attention focused on the start of wave B. This phase is crucial in determining whether the market will follow an upward trajectory (the yellow scenario) or continue its downtrend (the orange scenario). Resistance is firmly established between $2.17 and $2.33, posing a challenge to any immediate bullish momentum.

The $1.96 support level is a critical structural point to watch. A break below this level could signal further downside, potentially testing support zones around $1.77 and $1.68. These levels are vital for understanding potential downside risks and planning accordingly.

XRP’s Market Dynamics and Institutional Outlook

XRP’s recent performance reveals a mix of short-term bearish momentum and medium-term upward trends. Over the past week, XRP has declined by 13.4%, while showing a 10.7% gain over the past 14 days. Over the last 30 days, XRP has increased by 1.9%.

For institutional investors, these fluctuations present both opportunities and risks. The ability to maintain support levels and overcome resistance will be key to determining XRP’s next major move. Monitoring technical indicators and key price levels is essential for making informed decisions in this dynamic market environment. XRP’s resilience and ability to navigate these challenges will ultimately define its trajectory in the coming weeks.

Related: XRP Shuffle Signals Confusion

Source: Original article