Ripple’s XRP is experiencing a slight downturn, currently trading below the $2.40 mark after a 3% drop in the last 24 hours. Despite the dip, the token is showing resilience, bouncing back from the strong support level at $2. On the upper end, the $3 range continues to serve as significant resistance, keeping traders on edge.

The price action has been largely constrained between $2 and $2.24, forming a crucial consolidation zone. Maintaining this range is critical for a bullish scenario to unfold. Any decisive movement—whether a breakout or a pullback—will likely set the tone for XRP’s trajectory in the coming weeks.

Bullish Potential: Eyes on $2.76 Resistance

A bullish pathway remains on the table, but it hinges on XRP breaking above the resistance at $2.76. If this level is surpassed, the token could gain momentum, potentially targeting new all-time highs.

The optimistic outlook is supported by the broader uptrend, which analysts believe could be in its early stages. If XRP successfully clears the resistance zone, the market may witness a strong rally, with prices climbing beyond the psychological $3 level and possibly heading towards $5 in the medium term.

Corrective Scenario: Wave 4 Pullback in Play?

An alternative scenario suggests that XRP might currently be in a corrective phase, also known as Wave 4 in Elliott Wave Theory. This would mean the price could pull back further before resuming its upward trend.

A potential five-wave move downward could trigger a larger correction. However, this doesn’t necessarily signal the end of the bullish market. Corrections are often seen as opportunities for consolidation before a renewed push higher.

Key Support and Resistance Levels

• Resistance Zones: $2.46–$2.76
• Support Zones: $2.00–$2.24

For traders, the $2.24 support level is critical. If the price holds above this zone, it could act as a springboard for further upward momentum. Conversely, a breakdown below $2 could lead to additional bearish pressure, with the next support at $1.95.

Analysts Weigh In: Bullish Flag Pattern

Crypto analyst Josh from Crypto World highlights a potential bullish flag pattern forming in XRP’s price chart. For this pattern to confirm, the token must break above $2.48 and ideally surpass the previous high of $2.62. Should this occur, the price target could extend beyond $5, representing over 100% gains from current levels.

Josh emphasizes that short-term bearish trends are likely minor pullbacks within a broader bullish framework. He advises traders to watch for buying opportunities in the $2–$2.24 support zone, especially if a breakout follows.

What’s Next for XRP?

As XRP continues to trade sideways, the market is closely monitoring for signs of a breakout or breakdown. The current consolidation phase between support and resistance suggests that a decisive move could be imminent.

• Bullish Scenario: A breakout above $2.76 could trigger a rally towards $3 and beyond, possibly reaching the ambitious $5 target.
• Bearish Scenario: A breakdown below $2 could lead to further declines, but long-term trends still appear favorable.

For investors, this period of consolidation presents an opportunity to strategize. Accumulating XRP within the $2–$2.24 range could offer substantial upside if the bullish scenario materializes.

Conclusion

XRP’s price movements in December are shaping up to be pivotal. With key support and resistance levels in focus, traders and investors are preparing for what could be a defining moment for Ripple’s native token. Whether it’s a bullish breakout or a temporary pullback, the coming weeks are set to reveal XRP’s next major move.