XRP: Navigating Complex Market Dynamics with Elliott Wave Theory
The digital asset XRP finds itself at a pivotal juncture, currently trading just above the $2 mark. However, a deeper dive into mid-term technical charts suggests a more intricate corrective structure is unfolding, hinting at both immediate upside potential and a subsequent significant downturn. This analysis, rooted in Elliott Wave principles, provides a roadmap for what could be next for XRP’s price action.
According to insights from prominent technical analyst CasiTrades on X, XRP’s journey through this corrective phase may involve one final bullish impulse before a notable shift towards lower valuations. The proposed Elliott Wave sequence outlines a scenario where XRP could first experience a price surge, only to then face a potential breakdown if critical support levels fail to hold.
The B Wave’s Depth Signals an Impending Wave C Push
A granular examination of XRP’s price on the 1-hour candlestick timeframe, as presented by CasiTrades, reveals an intriguing forecast: a potential correction below $2 in the coming days. Crucially, this downside move is projected to occur only after XRP completes an upward “Wave C” movement, pushing its price beyond the $2.2 threshold.
This anticipated Wave C surge is expected to follow the recent pullback to approximately $2.03 over the past 48 hours. CasiTrades notes that this latest retracement manifested as a “B wave” that was deeper than initial expectations. Instead of a tight consolidation, the price executed a full ABC correction, descending to the 0.618 Fibonacci retracement level around $2.09.
Despite its depth, this retracement remains entirely consistent with a valid B wave within the framework of Elliott Wave theory. Its confluence with clustered Fibonacci levels and prior intraday support strengthens the case for the next leg higher within the broader Wave 2 structure.
Targeting the Wave C Upside: Key Resistance Zones
With the B wave likely established, market attention now shifts to the anticipated C wave push. Technical indicators point to specific upside targets:
- The primary upside target is identified near **$2.26**, correlating with the golden retracement level.
- A potential extension could see XRP reaching the **$2.28** region, where the golden pocket converges with the 1.236 extension.
This $2.26 to $2.28 zone is highlighted as a dense resistance area, bolstered by previous reaction highs and overlapping Fibonacci projections. The Wave C itself is expected to subdivide into five smaller waves, a pattern that typically signals bullish momentum during its formation.
The behavior of XRP’s price as it approaches and interacts with this critical $2.26-$2.28 band will be paramount. Its reaction here will serve as a decisive factor in confirming the broader market outlook and whether a more significant correction is indeed on the horizon.
Post-C Wave Rejection: A Path Towards $1.65?
While the immediate focus is on a potential rally, the analysis also outlines a significant downside risk once the C wave concludes. The analyst posits that a rejection from the projected resistance levels (around $2.26 to $2.28) could mark the beginning of a larger “Wave 3” move to the downside.
Should this rejection materialize decisively, XRP could embark on a sustained downward trajectory, bringing the macro support region of approximately **$1.65** back into play. However, the confirmation of this bearish path hinges on two key factors:
- The precise formation and development of the C subwaves.
- A clear and definitive rejection of price from the established resistance zone.
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