Ripple (XRP) Bounces Back but Remains Stuck in a Descending Channel

Key Takeaways

• XRP peaked at $2.90, marking the completion of wave (5) in its Elliott Wave structure.
• The price consolidates within a descending triangle, signaling potential correction or breakout scenarios.
• Interaction with the descending resistance will clarify the next move.

XRP recently achieved an impressive high of $2.90, completing wave (5) of its Elliott Wave pattern.

However, the price is now being corrected, consolidating within a descending triangle and testing key support levels. Will XRP find stability at $2.17 and launch a renewed rally, or is a deeper retracement toward $1.97 or $1.70 more likely?

XRP Price Analysis

The XRP daily chart shows that after reaching a new yearly high of $2.90 on Dec. 3, the price completed wave (5) of its five-waver pattern since Nov. 26.

It has entered a corrective phase, forming a descending channel to a low of $2 on Dec. 9. 

The ongoing correction aligns with an ABC wave structure, with XRP retracing to 0.382. This is a critical area to monitor for support.

At the same time, the Relative Strength Index (RSI) has retreated from overbought levels, reflecting waning bullish momentum and setting the stage for potential stabilization.

Today, the price is up by around 7% and was nearly 14% at its peak, hinting that buyers are still present and are willing to sustain the price.

If XRP holds above the 0.382 Fibonacci level, it could pave the way for another upward push, potentially targeting previous highs and Fibonacci extensions.

However, a failure to maintain this support may result in a deeper retracement, with $1.97 and $1.70 emerging as critical levels to watch.

Key Observations

• The rally ended: XRP entered correction after peaking at $2.90, ending wave (5).
• Descending channel: ABC structure targets 0.382 at $2. 
• RSI Cooling: The RSI left the oversold zone and is moving to the downside

XRP Price Prediction

Zooming into the hourly chart, XRP is in a corrective phase following wave (5) completion. It formed a descending channel with an ABC corrective pattern. 

XRP has formed a three-wave advancement to the downside, likely an ABC corrective pattern.

Wave (a) dropped to $2.17, wave (b) reached a lower high at $2.63 on Dec. 8, and wave (c) reached a lower low of $1.97 on Dec. 9, followed by a 13% rebound today. 

The RSI is recovering from oversold territory, signaling waning bearish momentum, but the next decisive move remains unclear.

A breakout could initiate a new uptrend, while rejection at descending resistance risks a breakdown below $2.20, potentially invalidating the bullish structure with further retracement to lower Fibonacci levels.

Key Levels to Watch

Support Levels:

$2.17: Critical immediate support to sustain bullish momentum.

$1.97 (0.382 Fibonacci): Strong support in case of a deeper correction.

$1.70 (0.5 Fibonacci): Major structural support for a broader retracement.

Resistance Levels:

$2.36 (0.236 Fibonacci): Initial resistance to overcome.

$2.47: Boundary of the descending triangle.

$2.90: Key breakout level from the previous high.

$3.20–$3.50: Fibonacci extension targets for wave (v).

The price action in the coming days will reveal whether XRP’s correction has concluded or if further downside awaits, setting the stage for a renewed rally or a continuation of the bearish trend.