XRP Eyes Next Bullish Leg After Key Support Test: Can $16.50 Be Reached?

• XRP’s test of .618 Fib level suggests the potential for a significant bullish move.
• Breaking the $2.38 resistance could trigger XRP’s next impulsive wave upwards.
• Historical trends suggest XRP could see over 7,200% gains, targeting $111-168.

XRP has faced challenges in gaining momentum, but recent developments suggest that the cryptocurrency is now positioned for a potential breakout. After testing the critical 0.618 Fibonacci retracement level, XRP has held strong, showing signs of a bullish divergence on the RSI. 

This support level has likely set the stage for the next upward move. The question now is whether XRP can break through resistance and trigger the long-awaited rally.

Testing the .618 Fibonacci Level for Support

XRP’s price action has been sluggish in recent months, with the market waiting for a key support level to hold. The 0.618 Fibonacci retracement level has now been tested and proven to be crucial for price stability. 

This support level is often seen as a strong point where price retracements tend to reverse, making it an important marker for potential bullish moves. Moreover, the confirmation of a bullish RSI divergence at this level reinforces the likelihood of an upward trend, signaling that XRP is ready for its next phase.

Breakthrough Resistance at $2.38 Is Critical

Looking ahead, XRP’s next significant hurdle lies at the $2.38 resistance level. A successful breakout above this level would mark the start of subwave 3, a phase that typically shows impulsive strength. 

However, until this resistance is cleared, XRP remains technically in a consolidation phase (W2/D), with $2.60 being the next major target for the D wave. Hence, traders and investors should monitor the price closely for signs of strength or weakness as XRP approaches this crucial resistance level.

Momentum Building Toward a Potential $16.50+ Target

Historical analysis of XRP’s previous cycles suggests that the next phase could see substantial gains. According to market expert Javon Marks, XRP has the potential to rise to $16.50 or more. 

In fact, looking back at past cycles, a similar rally could lead to an astonishing 7,200% increase, taking XRP’s price to anywhere between $111 and $168. Although these projections are speculative, they highlight the immense upside potential for XRP in the coming months.

Strong Indicators Support Bullish Outlook

XRP/USD monthly price chart, Source: Trading view

Several technical indicators align with the bullish sentiment surrounding XRP. The RSI has entered the overbought territory, signaling strong momentum but also suggesting that caution may be needed. 

Additionally, the MACD is in a bullish crossover, with the histogram expanding positively, reinforcing the strength of the upward trend. However, it’s essential to watch out for short-term pullbacks, as past instances of the RSI exceeding 70 have often led to temporary corrections.