XRP appears to be entering a critical phase as it completes a Wave 2 correction and consolidates above key Fibonacci support levels. With bullish technical patterns forming and investor momentum building, analysts believe the token could be on the verge of a significant breakout–with a projected Wave 3 target of $6.50.

Key Support Levels Hold as Price Stabilizes Above $2

Currently trading at $2,06, XRP has maintained stability above the $1,90 and $1,55 zones–which correspond to the 0.5 and 0.618 Fibonacci retracement levels, respectively. These levels are crucial to confirming the end of Wave 2 under Elliott Wave theory.

A strong resistance sits at $2,24 (the 0.382 Fibonacci level), but XRP’s recent move above $2 and consolidation near that mark suggests former resistance has flipped into new support. This shift may reduce the probability of a downside correction.

Inverse Head and Shoulders Signals Bullish Reversal

Technical analysts have identified a clear inverse head and shoulders formation on XRP’s chart–a classic bullish reversal setup. The breakout above the neckline at $2 confirms the pattern, and continued consolidation above this zone strengthens the bullish case.

Volume is increasing, and the price action is showing higher lows, suggesting steady buying pressure and mounting momentum. If XRP successfully retests the $2 zone, the rally could accelerate in the near term.

Wave 3 Targets Suggest Aggressive Upside

According to Elliott Wave analysis, XRP is now poised to enter a Wave 3 impulse–typically the strongest and fastest rally phase in a market cycle. The first major upside target is $6,50, aligning with the 1.618 Fibonacci extension. More aggressive scenarios place XRP at $9,50 (2.618 extension) and even $12 (3.618 extension), should bullish conditions persist.

With market sentiment shifting and technicals aligning, XRP is positioned for a potential breakout that could redefine its 2025 trajectory.

In the meantime, Ripple’s legal battle with the SEC is paused.