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
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.
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.
