XRP Approaches Significant Shift as Upward Momentum Meets Diagonal Formation

XRP is nearing a pivotal moment as new upward momentum aligns with a developing, expanding diagonal pattern. Recent support-driven movements suggest a possible macro shift that could lead to continued upward momentum if buyers maintain their grip on the market.

Key Takeaways

XRP is approaching a significant macro shift marked by upward momentum and an expanding diagonal structure.
Recent price movements suggest complexities in the market structure, with indications of strength emerging from lower levels.
The 0.5 retracement level has been successfully reached, with the RSI signaling growing strength.
Bitcoin's price action will significantly impact XRP's short-term direction.
While bullish signals are present, confirmation of a new trend is still required.

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Understanding the Market Structure: Complications Ahead

Hov recently pointed out an important change in XRP's market structure, revisiting earlier analyses that anticipated a potential dip to create a truncated low. Since that discussion, XRP has dipped even further, marking a new low on the line chart when compared to the wick from the liquidity sweep. However, the path to that low has proven more complex than initially thought.

Initially, the decline seemed like a straightforward three-wave correction. But upon further analysis, Hov recognized an emerging valid expanding diagonal pattern. Despite its unusual formation, the recent price action off the lowest point demonstrates signs of strength.

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XRP is now developing a clearer upward impulse, possibly indicating the early stages of the anticipated momentum required for a high-probability C/3 wave trade. While this early price movement does not confirm a complete trend reversal, it does reveal a significant shift in market aggressiveness.

Currently, Hov maintains a bullish outlook on this support zone. If buyers can consistently defend this area, the likelihood of a reversal scenario increases.

XRP Surpasses Key Retracement Level as RSI Indicates Rising Strength

According to TARA's latest update, XRP has successfully reached the 0.5 retracement level, demonstrating impressive strength on the Relative Strength Index (RSI). This reaction suggests growing momentum beneath the surface. A breakthrough above this zone would redirect focus toward the next significant target of $2.30, aligning with the important 0.382 level. Regaining this area would strongly indicate that XRP is potentially establishing a true bottom.

Despite these positive signs, confirmation of a new trend is still needed. Momentum is building, and the price action is becoming increasingly assertive—characteristics commonly observed at the onset of a macro Wave 3.

Another vital element lies outside of XRP's chart. Bitcoin (BTC) has recently reached its resistance zone around $88,300 but has yet to gain the necessary strength for a breakthrough. This moment of indecision is crucial, as Bitcoin's next move will heavily influence XRP's short-term trajectory. The market is on the brink of confirming its next major phase, and traders are closely monitoring how these pivotal levels respond in the upcoming sessions.

XRP XRP trading at $2.20 on the 1D chart | Source: XRPUSDT on Tradingview.com