XRP Consolidates Below $3.40, Eyes Next Resistance Level

As February begins, XRP has been exhibiting a period of consolidation, with its price remaining relatively stable in recent days. This price action is occurring just below its recent peak of $3.40, reached on January 16th. To break into new all-time high territory, XRP must surpass this resistance level.

In the short term, XRP is experiencing a phase of sideways consolidation, hovering just below the $3.10 mark. While the price hasn't made any significant upward moves recently, this could be a temporary lull before a potential breakout.

Looking at the long-term chart, XRP appears to be in the midst of a fifth wave that could complete a longer-term uptrend. Once this wave is completed, the market may experience a correction or pullback. These pullbacks could range from a smaller wave four to a larger and more significant correction. While the short-term outlook looks positive, the longer-term view suggests that after the wave five completes, there may be a major retracement.

Key price levels to watch include:

• Short-term support: The price has been finding support around key levels, especially on January 27th, where a potential bottom was marked in wave two.
• Short-term resistance: The $3.40 area remains a significant resistance level. A break above this would target higher prices, with $4.20, $5, and $6.62 as the next potential upside levels.

However, if the price drops below certain levels, it would suggest that the larger wave two correction is still happening. Potential risks include a break below $2.52, which could indicate a larger correction is taking place. A move below $2.52 could suggest that wave four is still unfolding as a larger correction, and the $1.96 level would then come into focus.