Ripple’s XRP has recently faced some price challenges, trying to stay above critical support levels. Currently, XRP is hovering around the $2.50 mark, managing to hold above the important $1.96 level, a crucial point that has historically offered significant support. This price action is situated between two key areas—the 2021 high of $3.30 and the all-time high of $1.96—both of which are shaping the current support and resistance zones.

XRP’s Larger Price Cycle and the Current Wave Structure

XRP is currently in the midst of an extended price cycle, with analysts observing that it is likely in the third wave of a larger upward movement. Following a low in mid-2022, XRP witnessed the completion of waves 1 and 2, and now it is in wave 3, which is generally considered the most powerful phase in any price cycle. This suggests that XRP could see significant price gains as wave 3 progresses.

Forecasts for XRP’s future suggest it could eventually hit between $5 and $10, though this remains speculative for now. The price movement will depend heavily on the completion of wave 3 and the subsequent corrective wave 4. Once both waves are complete, a clearer understanding of XRP’s potential price trajectory will emerge.

Critical Support Zones and What to Watch For

The most important support levels for XRP at this moment are between $1.79 and $1.96. If the price falls below these levels, XRP could face more significant corrections, pushing the price into a deeper support zone. However, given that the ongoing correction is part of the broader third wave of an uptrend, the longer-term outlook for XRP remains bullish, as long as these key support levels hold.

Any decline below $1.79 would trigger increased concern over a larger market pullback, while holding above these levels would indicate that the rally is likely to continue.

Rapid Price Movement and the Likelihood of Pullbacks

The pace of XRP’s rise during wave 3 has been notably fast, which, while not uncommon, does carry the risk of more volatile corrections. Rapid price movements often lead to more significant pullbacks or consolidations, as traders take profits or the market adjusts. Despite the likelihood of short-term corrections, XRP’s broader trend remains bullish, as long as the price can maintain its position above critical support zones.

It’s important to monitor how XRP reacts to these potential pullbacks, as they could create buying opportunities for long-term holders or offer short-term traders a chance to enter at more favorable levels.

Small-Time Frame Patterns: Triangle Formation and Breakout Potential

On shorter time frames, XRP is currently experiencing a period of correction, which could manifest as sideways price action or a counter-trend movement. This kind of price action is often seen in the crypto market before a larger move, and it appears that a triangle pattern is starting to form on the chart. Triangle patterns typically indicate that the market is consolidating before a breakout, whether upward or downward.

The direction of the breakout will largely depend on how the triangle resolves. If it breaks to the upside, XRP could gain significant momentum, especially if it can break through nearby resistance levels. Conversely, a breakdown below key support could trigger further corrections.

Conclusion: XRP’s Short-Term Outlook and Future Potential

The near-term outlook for XRP is marked by a battle between critical support and resistance levels. While the recent price correction could be part of a larger upward cycle, the possibility of short-term pullbacks or sideways movement remains a factor. The ongoing triangle pattern could indicate that XRP is preparing for its next significant move, either continuing its upward trajectory or experiencing a deeper correction.

The long-term prospects for XRP remain positive, especially if it can hold above the $1.96 support level. With its third wave potentially extending, the price could eventually reach the forecasted range of $5 to $10, but this depends on the completion of the current price structure. Traders should keep an eye on the smaller time frame for any indications of a breakout or consolidation phase as XRP moves forward.