XRP is nearing a pivotal juncture, with market participants closely watching if the cryptocurrency can clear the major resistance levels and start a new bull phase. XRP could be nearing the final stages of the Elliott Wave 2 correction, with the possibility of a Wave 3 advance considered the strongest phase of the Elliott Wave cycle, according to crypto analyst EGRAG CRYPTO.

The Relative Strength Index (RSI) is the other indicator that strengthens the bullish sentiment, as it is developing a divergence with XRP price. The RSI is making higher lows while XRP has been making lower lows, indicating that bearish momentum is slowly fading. This pattern does not always indicate a reversal; however, it has historically been seen around key market bottoms.

Key Resistance Levels Hold the Answer

The primary resistance zone is $1.30-$1.60, according to EGRAG. A trend that continues to rise above this range will give a clear indication of bullish control and improve the chances of a Wave 3 breakout.

Beyond that, XRP will have to reclaim $1.96 and then the $3-$3.60 zone. A strong break above the last Wave 1 peak will give better technical confirmation that the next impulsive rally has started.

On the downside, immediate support is located around $1.00-$0.95, followed by $0.75. If selling pressure intensifies, the $0.60-$0.52 zone represents the final major support area before the long-term bullish structure would come under pressure.

Technical Setup Supported by Growing Fundamentals

If Wave 3 develops as projected, EGRAG believes XRP could significantly outperform its previous rally. Since Wave 1 produced gains of roughly 1,200%, Fibonacci extension analysis suggests Wave 3 could deliver an even larger move, with projected upside ranging between 1,900% and 2,000% from the anticipated bottoming zone.

The bullish technical outlook is also being supported by improving market fundamentals. Spot XRP exchange-traded funds (ETFs) have reportedly attracted approximately $1.5 billion in inflows, while the XRP Ledger's tokenized real-world asset ecosystem has expanded beyond $4.3 billion, highlighting increasing institutional participation.

Growing discussions around XRP's potential role in cross-border payments have also boosted investor attention. However, analysts stress that technical confirmation remains essential. Until XRP secures sustained closes above the $1.30-$1.60 resistance area and breaks beyond its previous Wave 1 high, the projected long-term rally remains a technical possibility rather than a confirmed trend.

Also Read: XRP Price Outlook: Ripple Faces a Pivotal Test at Major Resistance

FAQs:

1. What is the Elliott Wave 3 pattern for XRP?

According to Elliott Wave theory, Wave 3 is typically the strongest and longest bullish phase. If XRP completes its Wave 2 correction, it could enter a powerful upward trend supported by increasing buying momentum.

2. Why is the $1.30-$1.60 zone important?

This range represents XRP's key resistance area. A sustained close above it would indicate buyers have regained control and significantly strengthen the bullish outlook for a larger rally.

3. What does the RSI bullish divergence indicate?

A bullish RSI divergence occurs when price makes lower lows while the RSI forms higher lows. It often suggests weakening selling pressure and can signal a potential trend reversal, though confirmation is still required.

4. What are XRP's major support levels?

Immediate support lies between $1.00 and $0.95, followed by $0.75. If selling intensifies, the $0.60-$0.52 range is viewed as the final major support zone before the long-term bullish structure weakens.

5. What fundamental factors support XRP's bullish outlook?

Growing institutional interest, approximately $1.5 billion in spot XRP ETF inflows, and the XRP Ledger's tokenized real-world asset ecosystem surpassing $4.3 billion continue to strengthen the long-term investment case for XRP.