A chart recently shared by Steph Is Crypto (@Steph_iscrypto) highlights that XRP's price is compressing into a distinct structure on the daily time frame.
The post implies that a massive breakout is imminent, with XRP trading within a symmetrical triangle and following a five-wave Elliott wave pattern. Once the triangle breaks, its momentum may increase.
Setup on the chart
The symmetrical triangle began forming in July after XRP reached an all-time high. Within this symmetrical triangle, it follows a clear five-wave structure, with consecutive highs gradually decreasing and lows gradually increasing, compressing the range of volatility as the candlestick chart focuses on both boundaries.
The starting point of wave E is near the peak at the beginning of September. This indicates that the sequence has matured, and as the symmetrical triangle approaches its resolution phase, volatility may increase.
What does the prediction mean
From the area near point E, a green arrow indicates that the price will fluctuate upwards. The arrow rises from the tip of the triangle towards the upper part of the price scale, ultimately stabilizing around the target of $4.5. This chart conveys the analyst's expectation of a decisive move following consolidation.
The chart does not provide clear targets or dates beyond the range, but the direction and position of the arrows suggest that the digital asset will climb to new historical highs.
Why patterns are important
The triangular pattern on the daily chart helps identify the control area between buyers and sellers. In this case, the combination of lower highs and higher lows defines a structural contraction lasting several weeks. The strong upward movement that led to this formation supports the continuity of prices but still requires further confirmation.
A firm breakout and daily close above the dotted line will validate the scenario described in the article. While a decisive breakdown below the lower support level would negate the position and reset expectations, it would extend the consolidation phase and could lead to a drop in asset prices.
What is the next step for XRP?
Two practical conclusions can be drawn from the chart. First, since XRP is entering the final wave of the Elliott wave sequence, its structure appears mature. Second, the chart suggests action after a breakout rather than within the range.
The current trading price of XRP is $2.83, showing a bearish momentum similar to the broader market. However, if the asset can follow the path outlined by Steph, this decline should be short-lived.
