Ripple's XRP recorded a strong breakout from the long-term price range on Friday and reached a high of $3.03 on Monday. However, since then, XRP has corrected and lost some of its profits, indicating profit-taking by investors at higher price levels.
Nevertheless, analysts remain optimistic about XRP's outlook. Veteran trader Peter Brandt shared on platform X that XRP has formed a 'rare continuation pattern' on the chart, which could create momentum to push the price up to $4.47.
Additionally, XRP 'whales' are also showing optimism about the potential for price increase in the future. According to data from on-chain analytics platform Santiment, the number of whale wallets holding over 1 million XRP reached a new record high of 2,743 on Friday.
So what support and resistance levels should be watched? Let's analyze the chart to find out.
XRP Price Prediction
XRP has dropped from the resistance level of $3, but this adjustment is expected to find support at $2.65.
If the price recovers from $2.65, this indicates that investors are trying to turn it into solid support. This increases the likelihood of a price surge beyond $3. In that case, XRP could soar to $3.40. The bulls are expected to strongly defend the $3.40 level, but the price increase could continue to extend to $4 if investors persist.
This optimistic view will be negatively affected in the short term if the price drops and falls below the 20-day exponential moving average (EMA) at $2.49. This could keep XRP fluctuating between $2 and $3 for a certain period.
Currently, XRP is receiving support from the 20-day EMA on the four-hour chart. One point to note is that the RSI indicator has shown negative divergence, indicating that momentum is weakening. If the price falls below the 20-day EMA, the correction could reach $2.65.
Conversely, if there is a strong rebound from the 20-day EMA, this indicates a buying opportunity as the price drops. Investors will try to push the price above the resistance level of $3. If successful, the pair could rise to $3.40.
