The chart showcases XRP’s recent price action, structured through an Elliott Wave sequence. Following a parabolic price rise, the asset completed five impulse waves, suggesting the end of a bullish cycle.
Currently, XRP consolidates within a descending triangle, hinting at potential continuation or reversal, depending on the breakout direction.
XRPUSD in a descending triangle | Credit: Nikola Lazic/TradingView
XRP hovers around $2.20 after a 6% decline and is close to the descending resistance. The daily Relative Strength Index (RSI) shows declining momentum, indicating cooling buying pressure.
However, depending on broader market conditions and volume behavior during breakouts, this also suggests a reset before potential trend continuation.
Given XRP’s current position in the triangle, traders should watch for decisive volume-driven movements.
A breakout above the triangle could signal a bullish continuation, targeting previous highs. Conversely, a breakdown risks a bearish correction to lower Fibonacci retracement levels.
Key Observations:
XRP completed a five-wave impulse, signaling the end of a bullish phase.
Key support zones are $1.27, $1.01, and $0.62.
A breakout above the triangle could target higher highs near $3.00.
XRP Price Prediction
This chart highlights a corrective structure in XRP’s price following a completed impulsive move.
The corrective pattern appears to be unfolding as a W-X-Y complex correction, with the price currently testing the support zone near $2.10.
This suggests further downside potential before a bullish recovery.
XRPUSD rejection at descending resistance expected | Credit: Nikola Lazic/TradingView
The Fibonacci retracement levels (0.382, 0.5, and 0.618) are critical in identifying support and resistance levels during this correction.
The next downside target lies near the 0.618 level, at approximately $1.90. If this zone holds, a reversal could initiate a new bullish impulse targeting prior highs.
The RSI indicates declining momentum, signaling bearish pressure. However, a bounce near the $1.90-$2.00 zone could confirm a higher low, paving the way for a reversal.
Traders should watch for volume confirmation at key levels to validate breakout or breakdown scenarios.
Breakout Target: $2.89 (prior high and 0 Fibonacci level).
Breakdown Risk: Below $1.90, a potential move to $1.63 (0.786 Fibonacci retracement).
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis.
Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information.
