XRP Price Analysis: Is a Breakout or Breakdown in the Cards?

In recent days, Ripple’s native token, XRP, has been seen trading sideways as analysts eagerly await signs of either a breakout or a breakdown. Although the broader cryptocurrency market is encountering some selling pressure, XRP has successfully maintained its key support levels despite its future direction remaining ambiguous.

As the short-term chart indicates, XRP appears to have formed a low point around April 7th. However, all subsequent rallies from that level have been characterized by corrective movements, displaying messy and overlapping three-wave structures instead of clean impulse waves. At the same time, support at $2.11 has thus far held, with additional support at $2.08 and $2.14.

After briefly breaching a minor Fibonacci support recently, the price quickly recovered without sustaining any losses. The market continues to form higher highs and higher lows, a positive sign amid the uncertainty.

There’s also a tentative Elliott Wave scenario that suggests XRP might be forming a diagonal pattern to the upside, although this setup isn’t particularly reliable due to the overlapping and jagged structure. A decisive breakout above the descending trendline from the April 30th low (approximately $2.12) could indicate the beginning of an internal third wave higher.

Key resistance levels to watch include $2.33 and $2.46. A clean breakthrough of these levels could spur fresh bullish momentum in the token.

As reported by Chainalysis earlier this week, blockchain analysis firm researchers have noted that cryptocurrency exchange platforms typically serve as the primary on-ramp for fiat currencies into the crypto market. However, in 2022, a shift occurred with stablecoin platforms like Circle’s USDC now serving as the main on-ramp.

Moreover, researchers observed that despite the broader crypto market experiencing some selling pressure recently, there are signs of resilience in the face of macroeconomic challenges.