Ripple’s XRP has recovered and is up more than 11 percent in the last 24 hours. The price is trading above the important $2.80 level and is now aiming to break through the $3 level. XRP peaked at $2.87 and then experienced a reversal.

Local uptrend and support levels

XRP has been in a local uptrend since December 30, characterized by higher highs and higher lows. To maintain the optimistic outlook, it is crucial that these higher lows hold. The market is currently in a sideways correction, which could signal the completion of the triangle pattern.

Wave structure and price action

The triangle could be forming an ABCDE structure, with the E wave possibly bottoming out last week. Typically, triangle breakouts occur quickly and aggressively, and price action has been a bit more convincing so far.

Analysis of current price movements

The recent decline in XRP price occurred in three waves that broke the micro support but did not cancel the overall uptrend. This suggests that price could retest support levels before executing a breakout. As long as critical support levels remain, the bullish outlook remains valid.

Critical price levels to keep an eye on

The key level to watch is $1.96. A break below would indicate a failure of the triangle pattern and could lead to a decline to around $1.80.

• Key support: A decline below $2.32 would indicate that the local uptrend has ended.
• Key resistance: Breaks higher above $2.72 and $2.90 would signal the potential for further upside, with the possibility of reaching all-time highs or even $5 in the medium term. XRP has already broken $2.72 and the bulls are now eyeing the next target of $2.90.