XRP is currently displaying indications of a potential shift in trend, although its price is still being impacted by a larger bearish divergence. In the last 24 hours, XRP briefly fell below the $2.25-$2.30 support range, but as of now, it has not confirmed a daily close below this level.
While this bounce is giving some hope to bulls, it is important to note that this does not guarantee the end of the bearish divergence. On longer time frames, the bearish trend is still evident, and the market is still experiencing this pullback. The price could encounter further hurdles, particularly if the larger bearish pattern continues to unfold.
Key Support and Resistance Levels
XRP is currently testing resistance levels on a smaller scale, specifically between $2.30 and $2.46. This range is crucial as it serves as a pivot point between potential bullish and bearish scenarios. A breakout above this resistance could indicate the beginning of a new bullish phase, while a failure to breach it may suggest additional downside risk.
The immediate support level being monitored by traders is at $1.95. If the price falls below this level, the market could see further corrections. However, if the support at $1.95 holds, there is a chance that the bullish momentum could resume. If the price drops further, the next significant support level is at the February low of $1.77.
Bullish Scenario and Potential Price Targets
If XRP manages to break above the $2.46 resistance, it could pave the way for a notable bullish move. In an ideal scenario, this could lead to a price surge towards the $5 to $6 range, providing a favorable reward-to-risk ratio for investors. This would signify the beginning of a new uptrend, ideally following a five-wave pattern that confirms the establishment of a bottom. A breakthrough above the $2.83 resistance level would offer more confidence that the bearish scenario is nullified and the market is in a strong uptrend.
