$XRP has been showing some significant upside momentum recently. Although this move is primarily seen as a corrective bounce, it was expected. XRP has hit the target zone between $2.42 and $2.45. This target range was specifically selected based on Fibonacci levels, which have been pivotal in defining potential resistance areas. It’s important to understand that although this target has been reached, there is still no indication that XRP has topped out, meaning further movement could still occur.
What’s Next? Further Targets and Potential Upside Movement
Now that XRP has reached its target zone, we need to understand what happens next. There are two possible paths for further price action:
Fibonacci Extensions: The first Fibonacci extension target for wave D has already been met. However, we can still consider the next Fibonacci extension level for the continuation of this move. If XRP reaches the $2.60 level, this would be the next area to watch for potential resistance.
Alternative Measurements: Another way of measuring the target is by comparing the initial wave A with wave C. The first extension reached its target, but the next possible extensions lie between $2.54 and $2.62. If XRP moves past these levels, we might see an invalidation of the current triangle pattern, potentially signaling a direct breakout and a test of new all-time highs.
Invalidation and Potential Breakout to New Highs
If XRP moves beyond the $2.62 level, it may signal an invalidation of the triangle pattern. While invalidation isn’t necessarily negative, it would suggest a shift in the price structure, possibly hinting at a breakout to new all-time highs. As we move forward, watching for any signs of a higher low or a direct breakout is crucial. This would be an exciting development for XRP, and traders should stay alert for opportunities, especially if the price makes a sharp move upward.
