The price of XRP is showing signs of a bullish recovery, with analysts watching levels for an upside breakout. After forming a low around April 7th, XRP has been gradually working through a corrective phase, and recent price action hints a rebound may be in play.
Current Market Structure
On the daily time frame, XRP is holding firm above critical support between $2.05 and $2.10. At the same time, it’s facing resistance between $2.35 and $2.36. A decisive breakout above $2.35 would open the door to higher targets at $2.44 and potentially $2.60 in the short term.
A bullish W-shaped double bottom pattern appears to be forming, further supporting the case for an upward move if resistance levels are cleared.
Elliott Wave Structure Suggests Rebound Potential
Analysts identified a WXY correction from the January highs that likely bottomed out on April 7th. From that low, XRP completed a five-wave advance, followed by a corrective three-wave pullback, a classic pattern signaling a potential larger bullish structure ahead.
Now, price action suggests the possibility of a new five-wave move up developing. Support is currently tracked at $2.22, $2.15, and $2.11. A drop below $2.11 would weaken the short-term bullish case and shift focus toward the next major support near $1.95.
Rising Funding Rates Could Trigger a Drop
While the price is staying above support levels, the cost for traders to hold long positions (called funding rates) is quietly going up.
Right now, the funding rate is at 0.01% every 8 hours, but if it rises to 0.02% or more without the price moving higher, there’s a good chance the price could drop. If XRP falls below $2.25, it could drop to $2.01, $1.90, or even $1.55.
The good news is that this dip might create the perfect setup for a strong comeback, with a big breakout possibly on the way after that.
