Ripple’s XRP is currently consolidating on the larger time frame, with no major price correction. Instead, the market is moving sideways, hinting at a period of consolidation within an overall uptrend. At the time of writing, XRP is down by more than two percent and is trading at $2.17.
Uptrend Still in Play
Despite the current consolidation, the overall trend for XRP is still bullish. The price action looks like a temporary pullback, rather than the start of a downtrend. If the price continues to move upward, it could challenge its all-time high of around $3.25 to $3.30, which also aligns with a critical Fibonacci level.
Holding Above the 2021 High
A key point to note is that XRP is holding above its 2021 high of $1.96. This is a strong signal of market strength. Maintaining this level is crucial for XRP’s continued positive momentum, and as long as the price stays above this, the market outlook remains favorable.
Short-Term Market Behavior: Triangle Formation
On the shorter time frame, XRP is currently forming a triangle pattern. While triangle patterns can lead to breakouts in either direction, they are fragile and tend to be less reliable. As a result, there is a possibility of short-term bearish action, but the price could also break to the upside.
Key Levels for Risk Management
For traders, it’s important to monitor the key support and resistance levels within this triangle. The price must hold above the $1.95 support level to maintain the triangle pattern. If it falls below this point, the likelihood of a bearish move increases, and the triangle scenario may be invalidated.
The $1.95 level is the key support for XRP and if the price stays above this, the consolidation pattern is likely to continue. However, if the price drops below this level, we could see a more significant pullback, with the next support areas being around $1.80 to $1.39.
