XRP Poised for Significant Breakout Despite Possible Shakeout

XRP is displaying encouraging signs of a major breakout on the horizon. However, the journey upward may encounter some obstacles. Current trading action indicates the likelihood of a shakeout—clearing out weaker investors before the price momentum builds substantially. With crucial levels undergoing testing and market structure tightening, the next movement could pave the way for a much larger price rally.

Key Takeaways

XRP indicates a potential breakout but may experience a shakeout to clear weaker investors.
A recent trendline breakdown is transitioning support into resistance, suggesting downward movement towards $0.87.
Critical short-term levels include the $1.40–$1.41 region and potential extensions towards $1.51–$1.55.
Historical patterns suggest XRP's current cycle mirrors previous trends, with expectations for significant price movements.

XRP

Trendline Breakdown: Critical Support Turns to Resistance

In a brief update on XRP, CasiTrades highlighted that the price is experiencing a break below the consolidation trendline, which had been stable for weeks. This level is starting to transition into a resistance point. This change aligns with discussions from Friday’s livestream and suggests that XRP might be on its last leg down towards the $0.87 support area.

On a smaller timeframe, especially on the 15-minute chart, the current upward movement is identified as a subwave 2 bounce. A clearly defined RSI trendline is guiding this short-term recovery, and as long as it remains intact, the bounce can continue. However, if there is a breach below this RSI structure, it would likely signal the commencement of wave 3.

XRP
Source: Chart from CasiTrades on X

In the short term, critical levels are key to monitor. The $1.40–$1.41 range is being observed as a potential B wave area, with possible extension targets towards $1.51–$1.55 to complete the C wave. These levels may serve as temporary resistance points ahead of the next significant movement.

Despite minor short-term fluctuations, the overall outlook remains consistent. The primary expectation continues to trend toward $0.87 unless XRP can reclaim and maintain above the resistance level of $1.65. Maintaining discipline and adhering to this plan allows for a focus on market structure instead of distractions.

Historical Patterns: XRP Mirrors Previous Cycle Behavior

As noted by Archie in an XRP update, the current cycle is evolving similarly to previous price behaviors. After establishing a bottom and a higher low, the market structure shifted, initiating a new uptrend. Historical cycles exhibit the same pattern: an initial price increase, a retest, followed by another significant upward movement.

If history does repeat, the essential trendline might be breached as early as this weekend. Further solidifying the bullish perspective is a divergence on the daily chart, suggesting strength is re-emerging beneath the surface.

Expectations during this cycle appear even more ambitious. Instead of pausing at prior all-time highs, market sentiment indicates a potentially larger upward trajectory, with targets reaching into double digits. Confidence is on the rise, and the prevailing narrative suggests that XRP's next phase could lead to explosive growth.

XRP
XRP trading at $1.41 on the 1D chart | Source: XRPUSDT on Tradingview.com