XRP is trading just below the $3.30 resistance level after a 40-day downtrend of more than 17%. The price experienced a short-lived move above this zone and could not sustain the momentum, confirming it as a level of resistance. This resistance value has become a critical point of reference as to XRP's next direction.

Technical analysis suggests that XRP is forming a symmetrical triangle, a pattern that is likely to result in a significant breakout. After two unsuccessful breakout attempts, XRP is on its third test of a breakout. Once the price rises above $3.30, that would indicate a shift in trend and a new bullish trend.

Technical Indicators and Elliott Wave Support

Both the daily chart and the weekly chart show bearish and bullish indicators. Although the price levels have formed bullish momentum, the MACD and RSI are neutral. The RSI is approximately 50, and the MACD is at the zero line, which is not a strong verification of momentum.

Ripple continues to expand its partnerships, which strengthen XRP’s global use case. Nevertheless, the Elliott Wave can replicate a five-wave bullish movement. Analysts view the existing pattern as a completed fourth-wave correction, supported by a triangle. Should this pattern occur, XRP may enter a phase five wave, as the prices are expected to target between $4.10 and $4.87.

Also Read: What’s Next for XRP? Ripple Price Analysis After 20% Pullback

XRP Performance Against Ethereum and Institutional Outlook

XRP has underperformed against Ethereum recently, falling over 50% since March. Nevertheless, it is currently trading around a major support level at the 0.618 Fibonacci retracement (0.0006 ETH), which lines up with horizontal support. This zone can serve as a point of trend reversal in the XRP/ETH pair.

Analysts are closely monitoring a potential XRP breakout above major resistance levels. The MACD indicator has formed a bullish divergence, further supporting the bullish picture, and the RSI is no longer oversold. If these indicators are valid, XRP may begin to regain some of the ground it has lost to Ethereum.

Strong XRP resistance zones could delay the next bullish rally. Market analysts also closely monitor regulatory action. Ripple potentially obtaining a bank charter in the US's new financial system could threaten the importance of XRP in tokenized finance. Analysts project that $6.6 trillion in daily bank settlements will be one of the driving forces. 

The XRP price remains a focal point for traders seeking short-term gains. The smallest movements of XRP within that system can place strains on the fixed supply. These estimations are, nevertheless, conditioned by the decisions of regulators and the economic situation.