XRP Hovers Around $3, Bulls Eye $5 as Triangle Formation Nears Completion

XRP, the native cryptocurrency of the Ripple network, has been trading in a tight range for much of the past week, with little indication of a significant trend shift in the near term. As of now, XRP is hovering around the $3.08-$3.14 range, having declined by more than 2 percent on a weekly basis.

Analysts employing Elliott Wave analysis, a sentiment-based method for predicting market movements, anticipate higher prices for XRP in the near future. However, this does not guarantee an immediate upward breakout. There could be a minor dip before a rise, but as long as any pullbacks are corrective in nature (slow, overlapping movements), the longer-term trend remains bullish. These corrections are expected to hold above key support levels, particularly the $2.52 level.

The triangle pattern on XRP's chart completed on January 13th, marking the end of the current consolidation phase. From an Elliot Wave perspective, this could signal the beginning of a larger five-wave move to the upside. The critical support level to watch is $2.52; a break below this could signal a shift in the market's direction, introducing more uncertainty. A decisive break below this support would suggest a potential deeper correction.

On the upside, if XRP successfully breaks through resistance, the next target levels to watch are around $4.20 and eventually the $5 mark. These Fibonacci extension levels will give us an indication of the price movement in the coming weeks.

With the triangle formation nearing completion, a breakout is expected soon, but it might take some time to materialize. Volume tends to be lower on weekends, so it's possible the price could dance around key support levels until more decisive moves occur early next week.