XRP Market Tension: Will Support Near $1.88 Spark Wave 3 Rally?

XRP traders are holding their breath—the $1.88 level isn't just another number on a chart. It's the battleground.

The Line in the Sand

Technical analysts have their eyes locked on that support zone. A clean bounce here could be the fuel for the next major leg up—what Elliott Wave practitioners call a 'Wave 3' advance. These moves aren't gentle; they're the powerful, trend-confirming surges that make headlines and fortunes. But let's be real—in crypto, a 'support level' is sometimes just a polite suggestion before a plunge.

Momentum at a Crossroads

The market's tension is palpable. Every tick toward $1.88 tests conviction. A decisive hold would signal strong accumulation, potentially unleashing pent-up buying pressure. A breakdown, however, would force a reassessment of the entire bullish structure and send traders scrambling for their stop-loss orders—the modern-day equivalent of a bank run, just faster and with more memes.

The Bigger Picture Play

This isn't just about short-term swings. A successful defense of this zone would reinforce a broader bullish narrative, suggesting the asset is building a base for a sustained rally. It's the kind of setup that shifts sentiment from cautious optimism to outright greed. Of course, in an asset class where 'fundamentals' can mean a celebrity tweet, even the prettiest chart pattern is one regulatory headline away from oblivion.

Will $1.88 hold and spark the rally? The charts are set. The only thing left is for the market to vote—with money, not promises.

XRP Holds Key Support as $2.00 Comes Into Focus

Analyst TARA also highlighted that XRP just bounced from its short-term support at 0.5, at $1.90. This is only a midpoint in the bigger retracement and not yet at its lower point.

XRP has already tested its Fibonacci resistance at 0.382, while Bitcoin is yet to test anything similar. This might propel XRP even higher towards its resistance at 0.5 at approximately $2.00.

The $2.00 level is now considered a strong barrier. If a clean break above is made, this will be a sign that strength is on the rise, and if not, a drop to the support region at $1.88 could be expected.

This support region has shown its strength before and may be retested if demand is surprised. Looking at the overall wave structure for TARA, it is not a bad sign if support is continually retested.

On a larger scale, XRP has already doubled in this cycle. Given this fact, bigger drops or new lower levels are not required. On the contrary, prices may continue with smaller movements until sufficient momentum is gained for the next leg up.

Looking forward, outlooks on the remainder of this year remain at $2.30, with a MOVE towards $3 in early 2026. On a full cycle basis, targets are much higher at $7 and $9.

Downside Risk Still Present Before a Stronger Reversal

Expert CasiTrades was a little more conservative in the short term, as XRP was unable to remain above $2.00 over the weekend. This reinforces that a downside direction is expected, with a lower subwave.

The strength of momentum and RSI indicators is in overbought conditions, a common sign within a corrective phase.

The critical levels to focus on are $1.73 for a temporary pause, then $1.64, which corresponds to the macro-level Fibonacci support line of 0.618.

The area close to $1.64 is considered the most likely final level for the correction. It is possible that XRP will immediately go towards the price of $1.64 without a temporary correction.

If it reacts sharply at or around $1.64, it could soon open up the way back up towards $2.41-$3.00. Models predicting timing show it may make its decision by Friday, Dec. 19th, before the holidays.