XRP Hovers Near Resistance, Bulls Eye $3.40 Breakout

XRP, the native cryptocurrency of the Ripple network, has been trading at $2.78, down by more than one percent. To confirm a breakout, XRP needs to surpass the swing high of $2.80, reached on February 4th. Until this happens, the market may face resistance.

On smaller time frames, the price is oscillating near a different support area, closer to the current price level. If XRP breaks above $2.80, the next resistance levels are at $2.96 and $3.30. This is crucial because if the rally is corrective, the analyst doesn't expect it to go much beyond the previous high. If the price exceeds $3.30, the market may need to reassess whether the pullback has already completed and whether the market is ready to push higher.

If the price dips back into the support zone, this could provide an opportunity for pullback traders to enter the market. However, if the price breaks out directly, attention will shift to the resistance area, with $3.40 being a critical level to monitor.

For a bullish scenario, the price needs to break above the January high of $3.40. If this happens, XRP could move towards $4.20, $5, or even $6.60, completing a five-wave pattern to the upside. After that, a major correction could follow. One more high would be ideal, but the market may take time to confirm this.

There's considerable resistance ahead, and it's important to remain cautious. A confirmed breakout is yet to happen, and while the price could break higher, it's likely that a pullback into the support area will occur before any new highs.