Ripple (XRP) Breaking the All-Time High on a 35% Rise – How Far Will it Go?

XRP Price Analysis

The daily chart illustrates XRP’s major breakout from a descending triangle that spanned several years, signifying a pivotal shift in market sentiment. Following the breakout in early November 2024, XRP rallied in a parabolic manner, reaching a new all-time high today at $3.30.

This came after a period of consolidation that lasted throughout December and the next runup started in early January at a low of $2. The price rose by 65% since the start of the month and with a new all-time high now reached, the main question is how far can the price sustain this parabolic runup before it starts crashing down?

The Relative Strength Index (RSI) on the daily chart shows that the price has entered overbought conditions, currently hovering above 80. While this confirms strong bullish momentum, it also suggests that the rally may soon face temporary exhaustion.

Historical price action indicates that pullbacks to retest prior breakout zones, such as $2.75, are common before continuation higher.

The wave structure aligns with the development of Wave 3 of a higher-degree Elliott Wave cycle it reached the typical point of 1.618 Fib extension. This is another sign that the upside room could limited, but the next significant resistance lies at $3.57 followed by $4.09 As profit-taking intensifies, consolidation or corrections are likely to occur at these levels, before the price could continue rising higher.

XRP Price Prediction

After the price made a breakout from the descending flat triangle on Jan. 1 it gave a signal of the next developing five-wave impulse. The 1-hour chart offers a more granular view of the ongoing Wave 3 within the broader structure, whose upside room remains in question.

XRP has extended past the 1.618 Fibonacci level at $3.06, which is a typical stopping point for Wave 3’s but . However, the RSI is showing bearish divergence, indicating waning momentum as the price approaches the 2.272 Fibonacci extension at $3.39.

In the short term, a corrective Wave 4 may unfold, targeting support levels at $3.06 (1.618 extension) or $2.88 (1.272 extension). These zones align with typical retracement levels and could provide a reentry point for buyers.

If the correction materializes, the final Wave 5 could propel XRP towards $3.99 (3.414 extension) and $4.09 (3.618 extension), completing the current impulsive cycle. On the other hand, the RSI is resetting from its overbought territory which could be interpreted as a sign of sustainable upward movement ahead.

Critical to this projection is maintaining support above $2.74, which serves as the invalidation level for the current bullish scenario. A breach below this level would signal a deeper correction and a potential trend reversal.

Key Levels to Watch

• Immediate Resistance: $3.39 (2.272 Fibonacci extension).
• Secondary Resistance: $3.77 (3 Fibonacci extension).
• Major Resistance: $4.09 (3.618 Fibonacci extension).
• Immediate Support: $3.06 (1.618 Fibonacci retracement).
• Key Support: $2.88 (1.272 Fibonacci retracement).
• Critical Support: $2.74 (Wave 2 invalidation zone).

Conclusion

XRP’s breakout from a multi-year consolidation pattern marks the beginning of a new impulsive phase. While the higher time frame signals continued bullish potential, short-term divergence on the RSI suggests a corrective phase could unfold before the next leg higher. Traders should monitor key Fibonacci levels and RSI dynamics to capitalize on the ongoing trend while mitigating risk.