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- XRP rises 6.99% to $2.97 as daily trading volume spikes 38.18% to $10.2B, signalling strong market activity.
- Analysts see XRP in Wave 3 of Elliott Wave, targeting $3.25 to $3.93 based on key Fibonacci extensions.
- RSI above 80 hints at overbought conditions; traders expect a pullback to $2.70 before the next upward move.
As of press time, XRP is trading at $2.97, reflecting a 6.99% increased over the past day. The trading volume for the same day stands at $10.2 billion, showing a 38.18% increase. In the past week, XRP showed a significant increase of 31.3%. The bullish trend is also gaining interest with analysts expecting more movement in the prices.
Source: CoinMarketCap
Matthew Dixon highlighted that XRP is experiencing an impulsive Elliott Wave pattern. The coin has entered Wave 3, or it is close to Wave 4. Wave 1 peaked at around $2.56 and the correction in wave 2 fell back to $2.00. The movement observed in the market currently confirms that XRP is in a raging bull period.
XRP Approaches Key Levels
Key Fibonacci extension levels indicate price targets. The 2.618 extension appears at $3.25, and the 3.618 extension appears at $3.67. A further rally may see XRP reach a high of 4.236, to about the $3.93 price value. XRP recently broke the 1.618 extension of $2.83, confirming that buyers were gaining strength.
The Relative Strength Index (RSI) has since moved above 80, indicating that XRP is currently in the overbought zone. This shows that a temporary correction or side movement can occur. Traders are projecting a minor retracement to $2.70 before any additional surge upward.
Wave 3 might finish around $3.25, provided the bullish momentum is sustained. A minor decline in Wave 4 would probably follow, and then an additional effort in Wave 5 could propel XRP to the range of $3.90 or even $4.00. These expectations are in line with the formulation of impulsive wave theory.
Source: X
Potential Reversal Signals
Nevertheless, reversals are possible. The RSI is very high could indicate bearish divergence in the absence of huge volume to back top price action. In the event, XRP might fall back to the $2.60 and $2.40 levels. Traders are advised to be cautious of False breakout signs.
According to CoinGlass data, the trading volume has grown by 40.26%, reaching a total of $21.76 billion. The open interest has also risen by 11.08% to hit $8.23 billion. The existing funding rate on XRP is 0.0125%, indicating a neutral market.
Source: CoinGlass
XRP has a critical position with a huge volume and bullish technicals. The next couple of sessions should most likely define whether the price will continue rising or experience a short-term rebound.
