Key Takeaways:
- XRP is retesting $1.90 after a flush to $1.61, with key support sitting at $1.55.
- A confirmed rebound from $1.55 could trigger a powerful breakout toward $8–$13.
- Momentum indicators suggest a reset, paving the way for Wave 3 if support holds.
The recent rally of XRP resulted in a brief spike above the $1.90 level, which soon turned into strong resistance. The coin dipped to $1.61 overnight, sweeping away liquidity before recovering to test the same $1.90 level.
This level coincides with the 0.5 level of the previous rally and is now proving to be significant resistance. Even though 24-hour volume spiked to $13.9 billion, a sharp increase of 127.46%, the price movement has come to a halt just below this barrier.
This rejection puts added significance on the unfolding Wave 2 corrective wave in XRP’s overall Elliott Wave pattern. Second wave corrections tend to correct deeply before establishing explosive Wave 3 rallies.
Failure to hold above $1.90 reinforces this configuration and implies there may still be room for further decline ahead of the recovery of bullish impulse.
Golden Pocket Could Seal the Deal
The key level next in store is the $1.55 range, XRP’s golden pocket and 0.618 Fibonacci retracement level. The previous fall to $1.61 reached the vicinity of this level but failed to reach it.
If it convincingly holds the price test of $1.55, it may be the end of Wave 2 and set the stage for a parabolic Wave 3.
The range between $1.55 and $1.61 is a definite demand level, and there were indications of buyer interest even in the previous dip. If bulls manage to hold on to this level and XRP again rises above $1.90, it would not only regain lost territory but also be a pointer towards the probable commencement of a much larger movement.
Wave 3 Setup in Play as XRP Builds Momentum
The Relative Strength Index (RSI) also flashed extreme readings of oversold in the $1.61 decline. Such a reset in the RSI is normal prior to lasting trend changes.
With the RSI recovering now and price lingering close to crucial structural levels, XRP looks set to make a larger move, provided that support levels of $1.55 remain in force.
A confirmed bounce in that area may trigger Wave 3, a rally that is both fast and powerful. The estimated Wave 3 goal is lofty, between $8 and $13. An impressive bounce there would validate that momentum is flipping in the favor of long-term investors.
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