A market analyst has released a new XRP price analysis, using the Bitcoin (BTC) chart and price action as the basis for her outlook. The analyst is short-term The outlook for XRP is bearishwith ongoing market volatility and changing sentiment creating challenges. While she highlights potential downside targets, the analyst also applies Elliott Wave Theory to establish resistance levels, and indicate areas where XRP could fall.
Market analyst Tara did that shared her plan for XRP, based on patterns she observed on the Bitcoin chart. In her post on significant downside risk remains at the forefront.
The analyst identified a complete Elliott Wave with five waves fell on the one-hour XRP chart, noting that the price ended its Wave 5 sell-off near the $1,362 support zone, a level visible on the chart as a strong horizontal bottom.
XRP price prediction based on Bitcoin chart
From that low, XRP has continued its corrective move to the upside, which Tara labeled as an ABC correction. This pattern consists of a wave A rally, a wave B dip, and an expected wave C push, which she expects will cause the price to rise in the short term.
Related reading: XRP Price Won’t Change Like People Think, Here’s a Better Pattern
The analyst explained that XRP, like Bitcoin, is currently waiting for a Wave 2 or Wave 5 retracement. She said the move is targeting the 0.618 resistance level at $1.51, which also equates to a measured 1:1 move. Moreover, she clearly stated that this upward move carries a bearish label and should not be misinterpreted as a sign of return to the market.
Tara further warned that this move could trap many bulls. She noted that many traders may do so mistake the short-term rally for a real breakoutonly to be caught off guard when the next wave begins. The analyst also noted that based on her readings of the Elliott Wave structure, traders should already be thinking about which wave could be next once this retrace completes near the $1.51 resistance zone visible on the chart.
Looking further ahead, Tara pointed to Wave 3 as the next big thing to watch. She noticed that Wave carries 3 downward targets as low as a double bottom at $1.12. The analyst added that the macro support level at $0.87 on the price chart also remains a likely and valid target, representing a much deeper pullback from current price levels.
Update on the XRP price action
XRP price is currently at $1.37 after a failed attempt to break and hold levels above the $1.40 resistance level. According to CMC data, it is XRP’s price performance has been largely bearish over the past two weeks, and fell by more than 6% in the past seven days and by more than 3% in the past 24 hours.
Related reading
The recent downturn has been caused by a lack of strong bullish catalysts in a market characterized by high volatility persistent geopolitical tensions. XRP’s continued bearish technical structure and negative sentiment have also weighed significantly on price momentum.
Featured image from Getty Images, chart from Tradingview.com