XRP price is holding near $2.86 after a sharp drop that tested a key support area. Many traders are now watching to see if this zone can spark a strong move higher.
Prominent market analyst Matthew Dixon posted on X(Formerly Twitter) that XRP price appears to have finished the E wave of a large triangle pattern. He noted that if this pattern plays out, the next move could be a fast rally known as a terminal fifth wave.
What you'll learn 👉
XRP Triangle Setup and Support Around $2.65
The four-hour XRP chart shows a clear contracting triangle with swings labeled A through E. The top of the pattern is a descending trendline running from about $3.20 down to $3.05, while the base is flat around $2.65 to $2.68.
There’s also a rising trendline from the July low that meets XRP price near the same area, making it an even stronger support. Since early July, XRP has been moving inside this triangle.
After topping above $3.20, it dropped to the base near $2.65, bounced back toward $3.10-$3.20, and repeated the process through August and September. The latest slide has now pushed price right back to that support zone, with today’s candle briefly touching it.
Read Also: Here’s the XRP Price If UK Parliament Declares Ripple Key to Global Payments
Momentum and Levels to Watch For XRP
Momentum signals line up with the support story. The 4-hour RSI around 18 is deeply oversold and usually occurs when the reversal is imminent.
In case of buying, the initial hurdles are at $2.80-$2.90, then $3.00-$3.05, and $3.15-$3.20. A violation above the said levels would have room to make way for $3.37, $3.46, and $3.57 based on Fibonacci extensions.
On the flip side, a daily or 4-hour close below $2.65 would weaken the triangle idea and could send XRP price toward the mid-$2.50 area.
What Traders Are Looking For Next
Dixon’s view indicates that finishing wave E often sets up a sharp move in the direction of the earlier trend. For XRP, that means a strong bounce that quickly pushes through $3.00-$3.20 and maybe higher.
Traders are watching for a clear XRP price breakout to confirm the pattern, while a drop under $2.65 would signal that the bullish setup might not hold.
This setup is a classic make-or-break moment. The triangle base has held for months, and the oversold RSI supports the chance of an upside move. But confirmation matters, without a clean push above $3.00, XRP could just as easily drift sideways or dip deeper.
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