XRP Price Could Retest $2.72 Before Next Bullish Move Toward $5 Target

XRP price is showing signs of consolidation under pressure, with analysts noting key support and resistance levels that could dictate its next move. The asset has bounced off the $2.90 level, with a hint of retesting $2.72 before making a recovery. Despite short-term weakness, analysts believed that this correction might be a precursor to a strong rally towards higher price zones.

XRP Price Retests Support at $2.72

Ali Charts analyst said that XRP is poised to retest the triangle’s bottom near $2.72. His chart indicated that the asset was forming a descending triangle, suggesting consolidation before a possible breakout. At the time of writing, XRP price was trading around $2.87 with some slight bearish pressure after it failed to hold its momentum above $3.00.

However, the structure did suggest a continuation phase with a potential bounce for the asset between $2.72 and $3.00 before making the next major move. Ali stated that if this lower boundary were retested, an increasing number of supports could form, potentially leading to a bullish reversal.

Moreover, volume data indicated a decrease in selling pressure, while the RSI readings are close to neutral levels. These signals suggest that buyers may soon re-emerge if the price remains above $2.72. Consequently, traders are closely watching this level for confirmation of renewed accumulation, which could result in a recovery towards $3.15.

Falling Channel Respects Long-Term Structure

Furthermore, analyst ChartNerd explained the ongoing consolidation in XRP as part of a larger falling flag pattern. He said the structure is sound and has a solid platform at $2.60 and likely an upside breakout target at $5.00. Despite the recent volatility, the analyst emphasised the importance of patience, noting that the setup remains bullish in the long run.

According to the wave analysis of XRP, the top altcoin has completed the fourth corrective phase and is now preparing for an impulsive fifth wave upwards. This structure resembles past cycles in which sharp rallies followed consolidation in a downward channel.

Interestingly, a sustained move above $3.20 would confirm this phase upward, and the measured move may extend to $5.00. However, failing to hold the $2.60 support could slow the breakout and prolong the current consolidation.

Technical Setup Hints at Short-Term Bearishness

However, analyst CryptoWZRD painted a more conservative picture, noting that XRP price has recently closed bearish during the broader decline of Bitcoin. He noted strong support during the day around $2.8850 and that holding above it could spark a rebound. His analysis indicated a potential short-term target of $3.15, followed by $3.65 if momentum strengthens.

The chart highlights key resistance levels at $3.15 and $3.65, which must be broken for a continued bullish move. CryptoWZRD believed that for the XRP price to resume its upward trend, it would be crucial for it to hold its price stability above $2.88.

Additionally, his outlook suggests near-term volatility, consistent with the prevailing sentiment in the general market. The price movements of Bitcoin continue to impact the performance of altcoins, such as XRP. A clean break above $3.15 could signal the completion of the bearish phase, setting up a rally to $4.60 or higher.

XRP ETF Filing Brings Hope for Investors

Meanwhile, a new development has brought optimism to the market. GraniteShares has officially filed for an XRP ETF with the US Securities and Exchange Commission (SEC). The proposal consists of three long and three short leveraged ETFs that can provide investors with greater exposure to the price movements of XRP.

This filing marks a significant milestone for institutional involvement in the XRP market. Analysts believe that approval of such products could increase liquidity and provide new capital inflows. Furthermore, the introduction of regulated leveraged ETFs would be a sign of growing confidence in the long-term prospects of XRP.