XRP Drops Below $3, Bulls Eye Breakout

XRP, the native cryptocurrency of the Ripple network, has experienced a significant downturn in recent days, falling more than six percent and dipping below the crucial $3 mark. This decline comes after a steady upward trend since the December swing low. However, analysts remain optimistic about XRP's prospects, predicting a potential bullish phase in the near future.

Elliot Wave analysis suggests that XRP's price movement has been impulsive, with corrective pullbacks indicating a possible third wave of upward movement. The current price structure suggests that XRP may be positioned for a breakout. A critical support level to watch is $2.76, which is key for maintaining the bullish trend on smaller time frames.

The larger market pattern, which completed a correction in mid-January, sets the stage for a possible five-wave upward move. However, a breakout above the previous high at $3.40 is essential to confirm the continuation of the bullish trend. If XRP fails to break above this level, the market could experience a test of lower support levels between $2.51 and $2.68, potentially requiring an adjustment to the overall market structure.

Despite the uncertainty, market sentiment remains largely optimistic, especially if XRP manages to break past the resistance at $3.40. The next major targets for XRP, if the bullish momentum continues, are $4.20 and potentially $5. Overall, XRP is showing promise, with many traders preparing for a potential breakout in the coming weeks.