XRP Shows Strength After Breaking Above Key Fibonacci Resistance

XRP is showing strength after breaking above a key Fibonacci resistance area earlier this week. This upward move followed positive market sentiment, likely driven by recent developments

Optimism towards XRP has been building as the token encountered resistance at a key Fibonacci area earlier this week.

This move follows positive market sentiment, likely driven by recent developments around crypto-based ETFs and discussed in a previous analysis.

While the structure of the rally is still complex and being closely monitored by analysts, several price levels will be crucial for determining the continuation of the bullish rally.

Short-term structure supports further upside

After forming higher highs and higher lows—a classic sign of upward momentum—XRP’s price action is unfolding in a diagonal wave pattern.

This type of structure is less powerful than a strong impulsive trend but can still support further gains.

The recent swing low, holding at $2.11-$2.12 since April 24, is a critical level to watch for. As long as XRP stays above this range, the bullish scenario remains intact. A drop below would require reassessing the short-term structure.

Next in the targeting sequence are the levels at $2.46 to $2.55. This area aligns with the 138% Fibonacci extension, a key milestone in wave-based analysis, and signals the completion of a larger third wave in the current five-wave pattern.

Larger structure still unclear, but bullish signs emerging

Step back to the daily timeframe, and XRP is still unfolding inside a long-term descending parallel channel. This places the broader trend in neutral to bearish territory.

However, there are several bullish developments emerging.

On the 3-day chart, the bearish divergence in the RSI—active since earlier in the year—is nearly invalidated. If the RSI manages to close a candle above its previous high, and the price breaks out above the $2.50 level, that would be a powerful signal of a trend reversal.

This would elevate XRP out of short-term relief rallies into a more defined bullish structure, setting the stage for potentially strong gains ahead.