XRP is trading above its descending channel, but confirming the breakout requires five upward waves and a decisive move past $1.34, according to the technical analysis. Support at $1.24 and $1.21 is set to determine whether the ongoing pullback extends the recovery or stalls it.

Beyond market structure, a recent XRP Ledger amendment strengthens token permissions and automated market maker (AMM) operations, adding protocol-level improvements that reach beyond XRP's price performance. The breakout attempt follows a prolonged correction, with traders focused on $1.34 as the level that would confirm the move.

Channel Breakout Leaves the Wave Count Unresolved

Market analysis account More Crypto Online identifies a breakout from XRP's descending channel. The analyst's long-term Elliott Wave count still allows for a move above $11, although the immediate structure remains the main concern.

According to the analysis, the current advance contains only three visible waves, meaning it could be a corrective rebound rather than a continuation of the uptrend. The analyst is therefore looking for five consecutive higher waves as more convincing evidence of a breakout.

That distinction is central to Elliott Wave analysis, which treats five-wave advances as the signature of trending movement and three-wave patterns as corrections within a larger structure — which is why the wave count, rather than the breakout alone, is guiding the interpretation here.

Under this framework, $1.34 serves as the immediate confirmation level. A move above it would strengthen the bullish signs, while a brief crossing without follow-through would leave the structure uncertain.

The daily Bitstamp chart shows an earlier decline toward $0.95. Buyers then stepped in, producing a sharp recovery toward the $1.60 region, after which the price pulled back before approaching the descending channel's upper boundary.

Fibonacci Levels Define the Recovery's Immediate Tests

The 50% Fibonacci retracement sits close to $1.29291 on the chart, with the 61.8% level around $1.21334 and the 78.6% level near $1.10622. These references serve as the benchmarks for judging future pullbacks.

Fibonacci retracements are a widely used charting method that applies fixed ratios to a prior price swing, giving analysts common reference zones for assessing where pullbacks may hold or give way.

The accompanying market snapshot places XRP around $1.31, reporting a 2.25% daily gain and a 1.05% weekly increase, with daily trading volume near $1.98 billion.

The first support identified by More Crypto Online sits around $1.24. A pullback toward this level could remain consistent with the recovery, though buyers would need to defend it to preserve the improving short-term structure. The next support lies near $1.21, close to the chart's 61.8% retracement. Losing that area would weaken the current bullish setup, making the lower $1.10 region a relevant reference.

Ledger Amendment Adds Technical Improvements

The market outlook also coincides with a recent XRP Ledger protocol update, as highlighted by BSC News on X. The fixCleanup3_4_0 amendment addresses a weakness in delegated token permissions and includes corrections affecting automated market makers and liquidity operations.

Delegated token permissions on the XRP Ledger let an account holder grant another account specific, limited authorizations — such as the ability to burn tokens — without handing over full control of the account.

The vulnerability involved accounts authorized to burn tokens but not to issue them. Under certain conditions, a zero-balance, burn-only payment could trigger unauthorized issuance. The amendment strengthens those permission rules and closes that potential route.

Other corrections concern token clawbacks and liquidity withdrawals. The update also improves asset calculations within Single Asset Vaults, addressing accounting and operational issues across ledger-based financial applications. The amendment further fixes invalid automated market maker auction bids, supporting more reliable liquidity pool operations and extending the update beyond its original token issuance concern. Because the ledger's native AMMs pool assets on-chain for token exchange, fixes touching pool and vault mechanics reach the infrastructure that such ledger-based applications depend on.

For XRP traders, the immediate focus remains the $1.34 confirmation level. Five upward waves followed by a supported pullback would strengthen the recovery case, while failure near resistance could leave the three-wave advance vulnerable. Support at $1.24 and $1.21 provides downside reference points, and the longer-term projection above $11 remains conditional on further price development.