XRP's price has been relatively stable as February begins, consolidating just under its recent peak of $3.40, which it hit on January 16th. Breaking through this resistance level is crucial for XRP to reach new all-time highs.
In the short term, XRP is trading sideways, around the $3.10 mark. This period of consolidation could simply be a pause before a potential upward move.
Looking at the bigger picture, XRP appears to be in the fifth wave of a larger uptrend. Completion of this wave could be followed by a correction or pullback, ranging from a minor wave four correction to a more substantial retracement. So, while the immediate outlook seems positive, a significant price drop is possible after the fifth wave finishes.
Key price levels to monitor include short-term support, particularly around the levels seen on January 27th, which may have marked a bottom. On the upside, $3.40 remains a key resistance. A break above this could lead to targets of $4.20, $5, and even $6.62. However, a drop below certain levels could signal a continuation of a larger wave two correction.
It's important to remember that breaking all-time highs is challenging. If XRP falls below $2.52, it might indicate a more significant correction is underway, potentially wave four. In that scenario, the $1.96 level would become a key area to watch.