XRP Battles Resistance at $2.66: A Breakout Above $3.40 Could Fuel a Rally to $5

• XRP is resisting at $2.66, with a breakout anticipating $2.97 and $3.40 for upward momentum.
• A double-bottom pattern at $1.71 and $1.60 reflects high demand, reinforcing key support levels.
• Elliott Wave analysis indicates that a breakout over $3.40 would drive XRP towards $5 and higher.

The XRP/USD currency pair has seen high volatility from January 2024 to March 2025, with the major support and resistance levels controlling its trajectory. The price had gone up to about $3.40 before experiencing several corrections, sitting at $2.56 in the latest trading session.

Critical Support and Resistance Zones

XRP’s price movement has tested Fibonacci retracement levels, with the 0.618 level at $2.66 serving as an immediate resistance point. The 0.786 retracement at $2.97 aligns with prior rejection zones, while the $3.40 mark represents a major breakout threshold.

Source: CoinMarketCap

A rounded top pattern led to a downward correction in February, with a five-wave structure pushing the price to a low of $1.71. A double-bottom pattern near $1.71 and $1.60 confirms a strong demand area.

XRP continues to trade within a volatile range, with key breakout levels determining market momentum. The bullish structure remains intact, as the price consistently prints higher lows and higher highs. If the price holds above the $2.66 mark, a potential move toward $2.97 and $3.40 could materialize. A rejection, however, may lead to renewed selling pressure.

Elliott Wave and Market Projections

A detailed breakdown from market analyst Egrag Crypto indicates that XRP remains in a crucial phase. The price movement follows an Elliott Wave structure, suggesting that failure to hold above $2.66 could validate a final fifth-wave decline. 

Source: EGRAG CRYPTO

According to EGRAG, a confirmed close above this level would indicate bullish strength, with further confirmation at $2.97. The ultimate bullish trigger remains a successful close at $3.40, which could propel the price toward $5 and beyond.

Trading volume analysis supports XRP’s current trend, reflecting increased buyer activity near $2.21. He points out that the 1.618 Fibonacci extension places a long-term target at $5.05, reinforcing the broader bullish outlook. Short-term price action will depend on reactions at these resistance levels.