The price of XRP is currently fluctuating just above $2, but mid-term technical analysis indicates a more intricate corrective pattern ahead. Insights shared by CasiTrades on social media platform X suggest that XRP might experience one last bullish surge before its trajectory shifts downward.
The analysis employs the Elliott Wave theory to outline a sequence that could initially propel XRP higher, subsequently paving the way for a potential breakdown if key support levels are breached. Specifically, the technical assessment on the hourly candlestick chart implies that after completing a Wave C move, XRP may correct downward, potentially falling below $2.
This anticipated Wave C is expected to occur after a recent pullback to $2.03 observed in the last 48 hours. According to CasiTrades, the recent pullback was a deeper B wave than previously anticipated. Instead of a brief consolidation, the price traced a complete ABC pattern, dipping into the 0.618 Fibonacci retracement around $2.09. This depth aligns with the characteristics of a B wave within the Elliott Wave framework and does not negate the overall structure.
The retracement level at $2.09 coincides with multiple Fibonacci levels and prior intraday support. The subsequent move is expected to be the next upward leg within a broader Wave 2 structure. With the B wave likely established, attention now shifts to the expected C wave surge. CasiTrades points out a primary upside target near $2.26, with a potential extension into the $2.28 area where the golden pocket and the 1.236 extension converge. This range is identified as a significant resistance zone, reinforced by previous reaction highs and overlapping Fibonacci projections.
This C wave is forecasted to subdivide into five smaller waves. Should this scenario unfold as anticipated, XRP“s price action may exhibit bullish characteristics through a clean subwave development. However, the reaction of the price as it approaches the $2.26 to $2.28 area will be crucial in confirming the overall market outlook and whether a correction will follow.
Currently, the focus remains on the potential for an upward push, yet risks to the downside persist once the C wave concludes. Observations suggest that a rejection at these projected levels could initiate a larger Wave 3 decline, potentially driving XRP towards the macro support region around $1.65. This bearish outlook hinges on how the C subwaves are formed and whether a decisive rejection occurs.
