XRP’s recent dip has sparked speculation about a major breakout. Analysts highlight potential upward momentum as the asset recovers from a four-day downtrend.
XRP Declines After Recent Highs
In the past 24 hours, XRP’s value dropped over 11%, sliding from $1.45 to $1.29. This downturn has added to its weekly losses, leaving it down 23% from its multi-year high of $1.62 on November 23.
This decline mirrors Bitcoin’s drop from $99,000 to $90,500 during the same period. However, experts believe XRP may be gearing up for a bullish reversal.
Technical Patterns Signal a Breakout
Crypto analyst Crypto Scofield suggests XRP is nearing a breakout as it approaches the critical point of a symmetrical triangle on its price chart. This triangle has been forming since XRP’s recent peak at $1.62.
Meanwhile, analyst Zeltima points to a potential dragonfly doji candlestick on XRP’s 1-day chart. This pattern often signals a bullish reversal. He also noted prior candlestick formations, such as a gravestone doji and a hammer, further supporting this outlook.
Following its drop to $1.29, XRP has rebounded slightly, trading around $1.37 at the time of writing. Despite this recovery, the asset remains 64.3% below its all-time high.
Wave Patterns Indicate Long-Term Growth
Technical analyst Charting Guy shared his wave count analysis for XRP’s price trajectory. He previously identified the wave 2 low at $0.38 in July and predicted the ongoing wave 3 correctly.
Currently, XRP is experiencing a minor correction in wave 4 of 3. Charting Guy expects this to lead into wave 5 of 3, potentially pushing XRP to price discovery with targets between $3.80 and $4.20.
Looking further ahead, he predicts a macro wave 4 correction, possibly bringing XRP down to $2 before the final wave 5. This could propel XRP to long-term targets between $8 and $13, a scenario likely to play out through 2025.
Conclusion
XRP’s recent decline may just be the calm before the storm. With strong technical indicators and bullish wave patterns, analysts foresee a significant breakout on the horizon.