The price of XRP is up 20% to $1,166, continuing its remarkable rally. Based on Elliott Wave Theory, the current move is consistent with the crucial third wave of the bullish pattern, which is often considered the strongest and most significant phase of an uptrend. This increase puts XRP in position to reach an important price point in the coming days. After breaking through the $1.00 level to initiate the first wave, XRP went through a consolidation phase around the $1.30 level to form the second wave.

With strong momentum and increasing volume, XRP now appears to be in its third wave. Historically, this wave has tended to push prices higher than previous moves, attracting more buyers and increasing optimism. The next resistance level, $1.80, is one of the important levels to keep an eye on while XRP’s momentum is still strong. If this level is broken, XRP could reach $2.00, a significant psychological barrier and all-time high.

If XRP continues on this path, $2 to $20 could also be considered a long-term target. Immediate resistance lies at $1.80. Furthermore, an outbreak confirms the strength of the third wave. A significant psychological and historical barrier that could lead to increased market activity is at $2.00.

$2.20: If the rally gains momentum, this could be the upper target. One of the downside risks is a break below $1.30, which would test the wave structure and indicate a possible trend fading. Any corrective action should be tempered by the strong support still in place around $1.30.

Uncomfortable Bitcoin market

As Bitcoin makes a lower high on the daily chart, it suggests a reversal is imminent. This is worrying for bullish traders because lower highs often indicate weakening momentum and potentially indicate a stronger correction. Bitcoin is currently facing resistance that could limit its short-term upside potential despite its recent strong rise.

If the high falls, it means buyers lose control and cannot push the price to new highs. As sellers gain confidence and trading volumes begin to decline, this pattern typically occurs before an extended consolidation or further downward move. If Bitcoin fails to break above the recent high of around $97,000, the current rally could be severely tested.

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Currently, Bitcoin is trading at around $97,500, just below the psychological threshold of $100,000. BTC needs to clear the immediate resistance at $98,000 to revive bullish momentum. On the downside, the $88,000 and $78,000 support levels are crucial. The lower high pattern would be confirmed by a break below $88,000, which would likely trigger a deeper pullback to the $78,000 area, corresponding to the 50 EMA.

The fact that the Relative Strength Index (RSI) is still close to the overbought level suggests that Bitcoin may need some cooling time before making another big move. There is also a possibility of near-term weakness as volume appears to be slowing compared to earlier in the rally.

Pepe’s great potential

Pepe is approaching a critical point as its price hovers around the 21-day EMA, a crucial support level that has continuously contributed to the continuation of its recent uptrend. The current short-term downtrend is reflected in the cryptocurrency consolidating below a descending trend line.

These circumstances suggest that an outbreak of one form or another is likely imminent. PEPE’s price recently rebounded from the 21 EMA, showing its importance as a support zone. If price can sustain above this level, it could open the door for a bullish reversal. On the other hand, a break below the 21 EMA could lead to a stronger correction; The next support levels are at $0.00001746 and $0.00001350.

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The ongoing decline in trading volume is among the most telling indicators on the chart. This drop in activity often occurs before significant price movements as it indicates a period of consolidation where traders wait for clear direction. PEPE is likely to experience increased volatility and break out of its current range once volume increases.

PEPE is under bearish pressure in the short term, as shown by the descending trend line on the chart. Price struggled to break above this trend line, negating recent attempts at an upside move. PEPE needs to maintain its position above the 21 EMA and confirm a reversal by breaking the trendline with high volume to see a bullish breakout.