XRP Price Tests Fibonacci Support: A Potential Reversal on the Horizon
The XRP price is currently hovering around the $1.80 region, a technically significant area that has attracted buyer interest in the past. This level coincides with a local 0.618 Fibonacci retracement, making it a crucial support zone for the cryptocurrency. According to recent market analysis, the price is stabilizing in this area, suggesting the early stages of a possible reversal. However, confirmation is still needed to validate this thesis.
A closer examination of the XRP price chart reveals that the current pullback appears to be more corrective than impulsive. The price has fallen back into the 0.618 Fibonacci pocket after failing to extend higher, which is consistent with healthy market structure during trend transitions. In such cases, the price often retests support before resuming its move. The $1.80 level has additional weight beyond the Fibonacci confluence, as it sits above a higher time frame support zone, making it a structurally favorable location for buyers to defend.
Key Technical Points and Upside Targets
The XRP price is testing the 0.618 Fibonacci Retracement near $1.80, a critical support zone. Resistance on the higher time frame lies at $1.98 and $2.21, which are the next upside targets. To confirm a structural change, the price must reclaim the Value Area Low (VAL) and hold above it on a closing basis. A clear reclaim of the $1.98 area would suggest buyers are regaining control, opening the door for a further move towards $2.21. A break above $2.21 would have broader implications, as it would likely confirm a change in market structure from corrective to bullish.
Volume behavior will be an important confirmatory factor in the coming days. Reversals that lead to sustained trends are usually accompanied by an increase in volume, signaling strong participation and conviction. In contrast, a bounce on low volume would increase the risk of rejection near resistance and continuation of rangebound or corrective price action. As the XRP price action unfolds, it is essential to monitor volume and other market indicators to gauge the strength of the potential reversal.
XRP Price Action: What to Expect
If XRP holds the Fibonacci support at $1.80 and reclaims the value area low on a closing basis, a rotation towards $1.98 and possibly $2.21 becomes increasingly likely. Failure to maintain support would cause the reversal confirmation to be delayed, and the price would remain in a correction or range phase. As the cryptocurrency market continues to evolve, it is crucial to stay informed about the latest developments and analysis. For more information on XRP and other cryptocurrencies, please visit https://crypto.news/xrp-price-tests-fibonacci-support-as-reversal-looms/.
XRPUSDT (4H) chart, source: TradingView
