Ripple’s XRP has experienced an impressive rally, rising 20% over the past 24 hours. After bouncing back from key support levels, XRP is now trading above $2.50 and is eyeing a return to the $3 mark. Bitcoin’s surge above $100,000 has also contributed to renewed market optimism, setting a positive tone for the entire cryptocurrency market.

XRP had recently encountered a crucial support zone between $2.13 and $2.22, a level that often distinguishes a shift between bullish and bearish market conditions. Upon testing this support, XRP initially triggered a negative reaction, signaling a potential downturn. However, the market has recovered from this dip, and analysts are now optimistic about the possibility of further price increases. Targets for XRP in the coming months are set at $4.19, $5, and possibly even as high as $6.62, contingent on continued positive momentum.

Temporary Setback in Short-Term Timeframes

On smaller timeframes, XRP experienced a brief dip below the $2.64 swing low, which temporarily invalidated a previously forming bullish pattern. However, the cryptocurrency has shown resilience, with the Elliott Wave count pointing toward potential support forming around the $2.72 to $2.22 zone. This level appears to be providing a solid foundation for the recovery, and the $2.96 mark is emerging as a critical resistance point. If XRP can sustain its rise, it could breach this level and make its way back toward $3.

In this scenario, XRP’s next price action will likely depend on how it performs in relation to the $2.96 resistance. A successful breakout above this level could propel XRP further toward its targets of $3 and beyond. On the flip side, a failure to maintain upward momentum at these levels could lead to a more significant pullback, which would need to be closely monitored to determine whether the trend will reverse or consolidate.

Key Levels and Outlook for XRP

To confirm the continuation of the upward trend, XRP must maintain its support above the $1.90 mark, which corresponds to the 78.6% retracement level. This level is crucial for XRP to keep its bullish momentum intact. If this support holds, XRP may be positioned to break through its resistance points and continue climbing toward the $4.19 target, and possibly higher levels like $5 and $6.62.

Two potential scenarios are emerging for XRP’s price trajectory. The first is a direct breakout from current levels, pushing XRP past resistance and into a stronger bullish phase. The second scenario involves an extended wave four correction, where XRP may experience a short-term dip before continuing higher in the next wave. Both scenarios suggest that if the price action remains healthy and above key support, XRP could be on track for further gains.

Navigating the Volatility: Monitoring the Pullback

Although XRP’s recent price action has been encouraging, the market remains volatile, and it’s crucial to be mindful of any corrective pullbacks that may occur. As the cryptocurrency market tends to move rapidly, there’s a chance for further short-term price fluctuations, but as long as the support levels hold firm, the long-term outlook for XRP remains optimistic.

Investors and traders will need to carefully observe XRP’s next pullback to gauge whether it’s part of a healthy correction or a deeper retracement. If the market stabilizes and the support holds, XRP could be set for significant gains in the coming weeks. With targets aiming for $4.19, $5, or even higher, XRP remains one to watch closely as the market develops.