XRP struggles to confirm breakout, holding key support levels while facing potential risks ahead - IcoHolder.
XRP's price has managed to stay above its recent swing lows, but the recent rally appears to have come to a halt, with the market entering a corrective phase. Despite some positive price action earlier this week, a breakout has not yet been confirmed. XRP briefly rose from $2.20 to $2.60, but it failed to sustain the upward momentum needed to establish a stronger trend.
One of the critical support levels for XRP has been identified at $2.39. While the price briefly dipped below this level, it remains a significant threshold for maintaining the uptrend. There is a possibility that the price will revisit this support zone, particularly if the market moves in a corrective pattern before it tests this area again.
The price action currently suggests that the ongoing triangle pattern (A-B-C-D-E) is still intact. Although XRP briefly broke above the D-wave high, this move did not hold. For the triangle pattern to be confirmed, the price would need to break above the $2.72 level. Until that occurs, the pattern could either extend or evolve into a more complex structure.
XRP's price has been influenced by the broader downward pressure in the cryptocurrency market, largely driven by Bitcoin's recent price movement. However, the effect on XRP has been more contained, with no significant support levels being breached. The overall market structure remains intact, and the key invalidation point for the current triangle pattern is at $1.96. If this level is broken, it could signal a major shift in the market's direction.
While the triangle pattern suggests a potential upward breakout, there is also the possibility of a more complex correction, such as a WXY structure, which could lead to a temporary downward move before resuming an upward trend. The failure to form a confirmed low suggests that a reversal has not yet occurred, leaving the market vulnerable to further corrections.
In summary, XRP is at a critical juncture, with its price staying above key support levels but struggling to confirm a breakout. Investors will need to watch for key price movements, particularly the $2.72 resistance level, to determine whether the bullish trend will resume or if further downside risks are ahead.
