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XRP has been trading in a narrow range following its strong rally earlier this year. While the larger trend remains bullish, recent price action shows the token testing critical support zones that could shape its next significant move. Traders are watching these levels closely, as short-term fluctuations may dictate whether XRP resumes its uptrend or enters a prolonged consolidation phase.
Weekly Chart Shows Divergence but Long-Term Uptrend Intact
On the weekly timeframe, crypto analyst Josh of Crypto World notes that XRP still shows a bearish divergence that has yet to be invalidated. This indicates caution for long-term traders despite the overarching bullish structure. Historically, divergence on the weekly chart can signal a temporary slowdown or pullback before a continuation of the main trend. In XRP’s case, the broader setup hints at potential upside, but short-term movements are likely to remain choppy until decisive support levels hold.
Daily Chart Highlights Crucial $2.97–$3.10 Zone
The daily chart emphasizes the importance of the $2.97–$3.10 zone, which has acted as both resistance and support in recent weeks. If XRP closes below $2.97, the bullish setup may weaken, leading to sideways price action in the near term. Conversely, maintaining support above $2.97 and reclaiming $3.10 would reinforce a potential breakout structure, increasing confidence in a continuation toward higher targets. A break below $2.90, however, would invalidate the current bullish scenario and set the stage for testing lower support around $2.85–$2.90.
Key Support and Resistance Levels
Traders are keeping a close eye on immediate and critical support levels: immediate support lies at $2.97, followed by $2.90, while the critical support zone is $2.79. Breaking below $2.79 could trigger a deeper correction with possible targets around $2.21–$2.46. On the upside, resistance levels to watch are $3.10 and the $3.30–$3.40 range. Holding above $2.79 is crucial for maintaining the bullish outlook, as it reinforces the idea that September marked a potential fourth-wave bottom, setting the stage for a fifth-wave rally targeting $5 in the longer term.
Elliott Wave Outlook Suggests Bulls Are Still in Control
Analysts following Elliott Wave theory believe XRP may currently be in the fifth wave of an upward move. The recent pullback is seen as a healthy correction within a broader uptrend, rather than a reversal. Elliott Wave patterns often feature a corrective phase followed by a final upward impulse, which aligns with the current setup in XRP. However, traders should note that conviction remains low until a clear five-wave move is confirmed.
Potential Upside Targets
If the bullish scenario plays out, XRP could extend toward $5 in the coming months, continuing the trend from its previous waves. This projection is supported by the token’s ability to hold key support levels and gradually reclaim resistance points. A successful fifth-wave rally would signify the continuation of the overall uptrend, rewarding patient investors who maintain their positions during short-term volatility.
Risks and Bearish Scenarios
Despite the bullish setup, XRP is not without risks. A failure to hold above the $2.79 support zone could favor a bearish scenario, potentially triggering a deeper pullback. In such a case, traders may see XRP testing levels closer to $2.21–$2.46. Short-term volatility and market sentiment remain key factors, and investors should monitor both support and resistance closely before committing to new positions.
Conclusion: XRP’s Path Forward
XRP’s current price action reflects a market balancing between short-term corrections and a longer-term bullish trend. The token is testing important support zones that will determine whether it continues its upward momentum or enters consolidation. Elliott Wave analysis suggests that bulls remain in control, with a potential fifth wave targeting $5 if key levels hold. Traders should watch the $2.97–$3.10 zone closely, as a breach below $2.79 could signal a deeper correction. For now, XRP’s broader structure remains positive, offering cautious optimism for investors anticipating continued gains in the coming months.
