Ripple’s XRP has gained over 2% and is currently trading above the crucial $2.15 mark. While this upward momentum is encouraging, market analysts suggest that XRP’s journey is far from straightforward. The cryptocurrency remains in a consolidation phase, leaving investors curious about what’s next for the digital asset.

Current Market Dynamics

XRP’s price trajectory is shaped by a strong uptrend on a larger time frame, with critical support levels identified between $1.50 and $1.79. As long as the cryptocurrency holds above this range, the focus remains on testing higher price targets.

However, the market’s fragility is evident, as XRP’s breakout point above $2.15 has yet to be firmly established. This keeps traders on edge, waiting for stronger signals to confirm the next move.

Consolidation Phase: A Springboard for Growth?

XRP’s price action is currently in a consolidation phase, with a potential for upward movement still in play. Analysts note that a successful breakout could push XRP toward challenging its all-time high.

The key levels to monitor are:

• Upside Target: $2.72 (B-wave high)
• Downside Support: $1.96

Should XRP fall below $1.96, attention would shift to the lower Fibonacci support zone between $1.39 and $1.80.

Is XRP Forming a Triangle Pattern?

The current consolidation is reminiscent of an Elliott Wave triangle pattern, often characterized by subdued price movements. This pattern involves five waves, and XRP is believed to be completing these waves.

To confirm the triangle’s continuation, XRP must hold above the C-wave low at $1.94. A dip below this level could lead to a more extended consolidation phase, pulling prices toward the $1.39–$1.80 Fibonacci range.

Short-Term Outlook: Sideways Action Dominates

In the immediate term, XRP appears to be locked in a sideways trading range, similar to trends observed in other altcoins like Hedera Hashgraph (HBAR). While this may seem uneventful, it’s a critical phase that could determine XRP’s next significant move.

The current consolidation offers two scenarios:

1. Bullish Breakout: A sustained move above $2.15 could pave the way for XRP to target $2.72 and beyond.
2. Bearish Correction: A drop below $1.94 would likely see XRP revisit the $1.50–$1.79 support zone, potentially leading to further price adjustments.

Key Levels to Watch

For traders and investors, these price points are crucial:

• Support Levels: $1.94, $1.50–$1.79
• Resistance Levels: $2.15, $2.72

A break above or below these thresholds will provide clearer signals about XRP’s direction.

Conclusion: A Waiting Game for Investors

XRP’s price remains in a consolidation phase, leaving investors in a “wait-and-see” mode. The cryptocurrency must break decisively above $2.15 or below $1.96 to establish a clear trend. Until then, patience and vigilance are key for navigating this uncertain period.

As 2024 comes to a close, XRP continues to offer potential, but confirmation of its next move will be crucial for traders seeking to capitalize on its momentum.