XRP News: Traders Watch Key Resistance Levels

XRP’s price seems to be arriving at a critical point as traders are keeping an eye on the two distinct resistance levels at $2.18 and $2.30 mark. If XRP displays a positive tone in the coming days, expert analysts are suggesting that XRP could test these resistance levels, break them, and rally onwards to the $2.73 mark, where it will meet its next resistance point.

Even after retesting the critical support level of $2.07 multiple times, XRP has maintained its price above the support level. This has created fresh confidence among traders who are watching the market with a positive outlook. If buyers can successfully hold down the selling pressure in the coming days, XRP can indeed rally towards its first major resistance point.

Elliot Wave Structure & The Bullish Target

XRP traders are actively analyzing the market, especially through the technical lens of the Elliot Wave Pattern. This pattern, which is heavily reliant on investor psychology, can help identify potential market directions if used properly. Based on the Elliot Wave Pattern, the next projected position is at $2.73, given that XRP can break through both of its initial resistances. This price position sits aligned with wave 3 of the pattern.

To check whether this pattern’s signal is valid, traders are making use of the Fibonacci retracement indicator. The value of Fibonacci retracement at the $2.18 and $2.31 resistance levels carries much importance. If the Fibonacci retracement is what it is supposed to be at these two resistance levels, it is confirmation of the Elliot Wave Pattern.

Simultaneously, there is an upward momentum building around the $2.07 support zone according to the Relative Strength Index(RSI) indicator. This momentum is considered to be a healthy signal as it is developing around the most recent bottom and in shorter timeframes.

Key Resistance Points Pose Significant Challenge

Before performing a significant breakout attempt, XRP needs to display a tight consolidation pattern. According to sources, the 0.618 and 0.786 retracement zones of the Fibonacci retracement indicator around $2.04 and $2.07, respectively, are indicative of a steady structure as prices hovered near the $2.09 mark.

While the Fibonacci retracement can successfully annotate suitable entry points in the market, traders are using an even more powerful tool at their disposal to pinpoint the exit zone-the Fibonacci extension. With the Fibonacci extension, traders have found the potential price target once a breakout occurs. According to traders and analysts, there are two potential points represented by the 1.618 and 0.618 macro extensions. Each of them corresponds to the price points at $2.73 and $3.00, respectively.

By using Fibonacci extensions in conjunction with the wave pattern, traders were able to locate the right entry and exit points. This massively helps in determining the right timing and risk management strategies. If the said resistance levels were taken out one by one, the wave pattern becomes more aligned, and the indications grow stronger.

Analysing The Strength Of The Momentum

The next biggest question is whether XRP can maintain enough momentum to break through the resistance levels, so that it can rally towards the next projected price point. Since XRP has been retesting the $2.07 support level multiple times now, it has become clear that defensive buyers have taken up the mission to protect this crucial support level.

The second biggest challenge would be to find enough buyers after the consolidation phase, and once the breakout begins. Without such buying pressure, it becomes highly difficult for XRP to maintain its momentum to make a rally towards the $2.73 mark.

If XRP can find enough volume surrounding the breakout zone, it can indeed source the momentum it needs to bootstrap it past the resistance levels and onwards to the $2.73 price. Based on this assumption, traders are drawing up wave 4 and 5; however, their values might need adjustment once XRP has successfully crossed every barrier towards completing the wave 3 pattern.

Conclusion

With the key resistance levels, two other major factors will determine whether XRP will rally upwards or come crashing down. The first among the two is momentum. Without enough buyers and a healthy momentum building up, XRP will find it hard to push past $2.18 resistance, let alone reach the $2.31 resistance. Besides this momentum, the second key factor is how strong the $2.07 support holds. XRP is seen hovering in the $2.08-$2.09 range. The asset, however, has retested the support level multiple times now. Holding XRP above $2.07 support level is crucial to the bull run.

Whether XRP will cross the barriers and rally towards the $3.00 mark is a tale that time and technicals will tell. For the moment, the key to XRP’s success will be determined by parameters that are hard to achieve. However, the investor confidence has soared since the technical analysis regarding the Elliot Wave Pattern has surfaced, which could provide XRP with its much-needed momentum for the coming rally.