Ripple's XRP surged to $2.71 on December 17 after the RLUSD stablecoin was launched as expected.
However, right after hitting this mark, XRP reversed and is currently trading around $2.55.
XRP is showing strong support near the $2.40 level, while the market is still moving in the right direction and may slightly rise higher.
A small support zone has been formed between $2.55 and $2.62, although there are currently no clear signs that this level will be retested.
The third upward wave is still ongoing and has achieved a 100% extension. The ideal target for the third wave is around $2.81, however, support needs to be maintained above the current price range.
If it drops below, it will be considered a deeper correction, but still within the microstructure.
The third wave is expected to extend higher, followed by waves 4 and 5, which could push XRP back to test its historical peak.
However, the current structure remains quite fragile. Although this rally is not as strong as previous recoveries, the support zones are still being held.
Can XRP break out to $3.80?
According to analyst Josh from Crypto World, XRP has a strong support zone around the $2 mark, where previously resistance has now turned into support.
In the short term, XRP's price is maintaining the breakout from the bullish flag pattern that began a few days ago.
This breakout is showing stronger momentum as XRP continuously sets new highs, reinforcing the upward trend. This is a positive price structure with a pattern of higher highs and higher lows forming.
The price target for the breakout from this bullish flag pattern is around $3.80, corresponding to a potential increase of 40% to 60% from the breakout point.
This target is still being maintained as the breakout has been confirmed, and the previous resistance zone is now acting as strong support.
