XRP Stands at a Crossroads: Breakout Potential Clouded by Bearish Signals
XRP is currently exhibiting signs of underlying strength, successfully holding above critical support levels. However, the path to a definitive breakout remains uncertain, as ominous bearish divergences across higher timeframes are casting a shadow of caution over the market.
Bearish Divergence Signals Market Caution
Market analyst CasiTraders recently highlighted XRP's upward momentum after it rebounded from a key trendline. While this bounce is encouraging, the cryptocurrency faces a significant hurdle at the $3 resistance level. Breaking past this point is crucial for confirming the onset of a new bullish trend. Should XRP fail to overcome this resistance, downside risks persist, with crucial support identified at $2.79 (a 0.5 retracement) and $2.58 (a 0.618 retracement). Further analysis suggests that the recent price action aligns more with a clean ABC corrective pattern rather than a powerful 5-wave impulsive rally. The rejection of typical C-wave targets, coupled with noticeable bearish divergence on the 4-hour chart, indicates that the current conditions are not ideal for the commencement of a true Wave 3 breakout.
XRP Support Holds Firm as Momentum Builds
Despite the cautionary signals, XRP's support levels have largely remained intact, patiently awaiting the decisive momentum needed to pierce through existing resistance barriers. Without a significant push, the price risks consolidating within its current range or even retesting lower support zones. A retest of the $2.58 level, however, could still serve as a launching pad for a more substantial bullish movement, underscoring the importance of a successful breakout. For a true Wave 3 breakout to be confirmed, XRP must decisively clear major resistance levels at $2.79, $3.00, and $3.25 without hesitation or repeated rejections. Any failure to do so risks invalidating the current bullish structure entirely. Traders are also advised to closely monitor Bitcoin's movements for broader market alignment and look for bullish divergences during any potential pullbacks. XRP stands at a pivotal juncture, where a successful breach of resistance could ignite a long-anticipated rally, but failure could lead to a significant reassessment of its bullish prospects.
