Market analysts have identified critical XRP levels investors should watch out for, which would determine the next price direction.
Notably, XRP has entered a new consolidation phase after jumping 13.79% between Nov. 23 and Nov. 24 in a move that reversed the earlier 11-day drop that pushed the price to $1.81 on Nov. 21.
Despite gaining over 1% yesterday, it continues to trade in a tight band between $2.14 and $2.27 as traders wait for signs of its next breakout attempt.
Why the Current Third Wave is Crucial
Amid the uncertainty, the analyst behind the More Crypto Online channel recently analyzed XRP’s short-term chart and presented several price levels that could set the tone for what comes next. The market watcher explained that XRP may be forming a possible five-wave pattern to the upside, but he stressed that the structure remains incomplete.
According to him, the waves do not yet show the typical proportions of a clean impulse because the third wave has not clearly established itself as the strongest leg. He noted that the pattern would look more convincing if XRP pushes out one more high.
The analyst further highlighted that many attempted reversals in this cycle have failed after only three waves, which makes the current area especially important. He said he still has not seen proof that wave 4 has reached a bottom.
Critical XRP Support Range
He called attention to a major support area between $2.07, which lines up with the 50% Fibonacci retracement, and $2.18, which matches the 23.6% retracement. The market commentator believes XRP must hold this zone to keep alive any chance of forming a fifth wave higher.
He warned that a break below $2.07 would weaken the bullish setup and increase the likelihood of a drop back to the Nov. 21 low around $1.81. He added that XRP could even revisit the lower support area around $1.77, which aligns with the 78.6% retracement.
From an Elliott Wave perspective, he said the current bounce remains too small to confirm a trend reversal, especially since the broader correction started on Oct. 13. He noted that traders usually gain confidence only when the market prints a clear one-two wave structure after a correction. Without that structure, he believes short-term trades carry more uncertainty.
The analyst also identified $2.12, the 38.2% retracement, as the ideal support for wave 4 and said he expects a reaction at that level. When the market fails to respond there, he sees it as a sign that the trend has topped, which can lead either to a deeper low or a more complex pattern.
He added that many traders avoid fifth-wave trades because the risk-to-reward ratio tends to shrink, and breakouts above the third-wave high often produce only a slight new high before the market turns lower.
XRP Still Hasn’t Held the Monthly rVWAP
Meanwhile, in a separate commentary, analyst Dom noted that XRP has not changed much recently, confirming that he now watches the monthly rVWAP, which XRP has failed to hold for almost 2 months. Dom expects a recovery above this level to pull the price back into the $2.40 range and improve the long-term picture.
Speaking further, he noted that the order books look clear, suggesting that whichever side stays aggressive at current prices will likely control momentum. According to Dom, any move below $2 would signal that XRP’s year-long range might be ending.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
