XRP Ripple Breakout Delayed: Bearish Signals Indicate More Downside Testing

What to Know:

• Ripple (XRP) exhibits a minor uptick, hinting at the possibility of a Wave 3 breakout.
• Despite bearish divergences, long-term projections signal a bullish trend akin to XRP’s 2017 rally.
• Analysts closely monitor support and resistance levels to predict XRP’s next move.

Ripple’s native cryptocurrency, XRP, has experienced a slight increase of 1.58% in the past day. This uptick, coming after a period of market turbulence, has fueled anticipation of a potential Wave 3 breakout. However, bearish divergences continue to present a possible roadblock to this breakout.

XRP’s recent rebound from a key trendline has been encouraging, yet it has not managed to breach the crucial $3 resistance level. This level remains a vital indicator of a new bullish trend. Market analysts suggest that until XRP can overcome this resistance, it’s prudent to anticipate potential downside tests. Immediate support levels identified are at $2.79 (50% retracement) and $2.58 (61.8% retracement).

Recent price actions have raised caution among investors. The upward trend from the trendline appears to be more of a corrective ABC pattern, rather than an impulsive five-wave rally. This is further evidenced by the sharp rejection of C-wave targets and the emergence of bearish divergences on the 4-hour chart.

On the shorter-term 1-hour RSI, XRP is testing the lower support trendline. Any drop below $2.69 would necessitate a reevaluation of the current wave count. Nevertheless, a test of $2.58 could still align with broader bullish expectations if maintained. Breaking $2.58 would threaten the overall bullish market structure and put the macro outlook at risk.

A genuine Wave 3 breakout would require decisive breaks above $2.79, $3.00, and $3.25. Any hesitation or rejection at these levels, analysts warn, would likely signal further downside testing before any sustained upward movement.

Market experts advise close monitoring of Bitcoin’s performance for alignment and the appearance of bullish divergence in the next wave down. With these factors in place, XRP could be poised to make the anticipated breakout.

Despite these near-term bearish signals, some analysts see a long-term bullish setup that could echo XRP’s historic 2017 rally. If XRP maintains or surpasses its current level until the quarter ends, bullish momentum is expected to persist.

Analyst Milkybull Crypto noted the potential for XRP to record its highest quarterly close, setting the stage for a broader uptrend toward $15. This mirrors the events of 2017 when a quarterly close above $0.02 sparked a rally of nearly 37,800%, propelling XRP to an all-time high of $3.31 within a year.

There seems to be a similar trajectory for XRP in 2025, with a quarterly candle turning green after years of consolidation. The token has decisively broken through a significant resistance zone around $2.20-$2.30, leading some to suggest that history may repeat with another substantial rally. As always, investors are advised to keep a close eye on these pivotal levels in the crypto market, particularly with assets such as XRP.

Related: XRP Price: $12M Max Pain for Bears