XRP Faces 5% Decline Amid Volatility, Analysts Eye Breakout

Ripple (XRP) is currently in a consolidation phase, with analysts predicting a significant price surge in the near future. The cryptocurrency is trading below the $2.5 support level, but market volatility has intensified, suggesting an imminent breakout. Analysts have identified this phase as the "Kangaroo Phase," a period of consolidation before a major price movement.

One critical factor in this phase is XRP's consolidation above the Fibonacci 0.888 level, which aligns with $2.30. This level is seen as a launchpad for upward movement, with XRP currently trading above $2.51. The macro consolidation zone between $2.30 and $3.37 is crucial for price stability. Analysts have identified a "noise zone" between $2.00 and $3.40, where XRP must break out to initiate a rally. If this phase mirrors historical patterns, the next upward move could target Fibonacci extensions of $8.50 and $13.00, followed by a potential push toward $27.00.

Historically, XRP has followed a similar Fibonacci extension path, surpassing the 1.618 level before making a parabolic surge. If history repeats, the Fibonacci 2.236 extension suggests a price range of $27 to $222. Analysts believe XRP’s current setup aligns with this historical trajectory, positioning it for a significant breakout in the coming phases.

At the time of writing, the price of XRP is at $2.34, reflecting a 5% decline. The Ripple price is facing resistance at $2.50 and $2.70, while support is forming at $2.20. The market remains volatile as XRP struggles to maintain bullish momentum. The four-hour chart indicates bearish pressure, with XRP trading below key resistance levels. A rejection from $2.50 led to a pullback toward $2.34. If sellers push further, the price could test $2.20. However, a breakout above $2.50 may open the door to $2.70.

The MACD indicator shows weakening bullish momentum. The MACD line is below the signal line, confirming a bearish trend.