XRP Price Update: Elliott Wave Analysis Suggests Key Levels Ahead

In the latest analysis of XRP (Ripple), market watchers are delving into potential price movements based on Elliott Wave Theory. The cryptocurrency has recently transitioned from a support level to resistance, showing a three-wave movement up. Here's what traders and investors should know:

Current Observations

• Three-Wave Movement: XRP displayed an ABC structure upward, signaling a corrective rally. Analysts are now monitoring for signs of a potential C-wave correction to the downside within the Wave 4 pattern.
• Key Support Levels: While a deep pullback to $12 is technically possible, the standard support range is identified between $1.85 and $1.12. However, a shallower retracement or triangle pattern could also develop, leaving the depth of the correction uncertain.

Fibonacci Targets

• A corrective rally in a B-wave has approached the golden ratio level of the 61.8% retracement at $2.60. This aligns with a typical target for such structures.
• Analysts predict the potential for the C-wave to extend into a Fibonacci extension area. Key focus levels include:
  • 100% extension at $1.99
  • 161.8% extension down to approximately $1.66

Retesting Critical Levels

XRP has yet to retest its 2021 high of $1.99, a previous breakout point. Analysts suggest this could be a critical retest area, supported by Fibonacci projections.

Potential Scenarios Ahead

1. Downward Continuation: If the price breaks below its previous swing low and exhibits impulsive movement, it could confirm the C-wave to the downside, characterized by a five-wave structure.
2. Triangle Formation: If support is found around $2.16, XRP may enter a consolidation phase, forming a triangular pattern before a potential upward breakout.

Conclusion

The immediate outlook for XRP hinges on how it responds at key levels, such as $1.99 and $2.16. Traders are advised to watch for signs of a corrective bounce or impulsive continuation to gauge the next direction.

Disclaimer: This update is for informational purposes only and not financial advice.