XRP has spent the past week continuing a downtrend from the previous week, falling from above $2.50 before recovering around $2.12 and now hovering around $2.30. The price action reflects a market struggling to find direction, caught between bullish optimism and continued selling pressure.
Despite the broader slowdown in its price action, technical analysis shows that XRP is still showing a resilient structure on the charts maintains its critical support levels. According to Egrag Crypto, a popular analyst known for his long-term technical views on XRP, the token could soon enter the most explosive fifth wave yet.
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XRP Elliott Wave Analysis: ‘The Power of 5’
Egra Cryptos latest technical analysis on the social media platform, X points out the fact that XRP is in the final phase of its fourth impulse wave, a corrective wave based on the popular Elliott Wave Theory. It is striking that this movement is now preparing for the beginning of the fifth wave, which according to the same theory is a bullish impulse.
Looking at previous cycles on the 5-day candlestick time chart, especially in 2017 and 2021, it was found that similar setups preceded massive upward surges in the price of XRP. The analyst’s chart shows a repeating structure of five-wave patterns, each representing major bullish impulses in the token’s history.
The chart also reflects the clear cyclical rhythm of XRP’s price behavior over the years. Each large impulsive phase (waves 1, 3 and 5) is always followed by smaller corrective waves (2 and 4), a structure that continues to repeat with precision.
The overlapping bands in cyan and pink, which represent exponential moving averages, now indicate that XRP is consolidating within a strong support region around $2.20, indicating that the fourth impulse wave is coming to an end.
XRP Technical Analysis: Source @egragcrypto on X
Analyst says don’t fight it
By Egrag Crypto’s metric, the ongoing consolidation could set the stage for one similar move to double-digit prices if the fifth wave unfolds as predicted.
The visual projection highlights potential Fibonacci extensions of 1.272, 1.414, 1.618 and 2.618 at $4.789, $5.515, $6.755 and $18.259 as possible long-term targets once the fifth wave arrives. These levels could act as resistance points in the impending bull phase, as they resemble the wave geometry that powered XRP’s previous rallies in 2017 and 2021.
Interestingly, the analyst also alluded to how Skepticism often peaks earlier big rallies. He reminded followers of a trader who lost $30 million shorting XRP during the last major uptrend in 2024. As such, the analyst concluded by urging traders not to “fight the fifth wave,” but to “ride it.”
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At the time of writing, XRP is trading at $2.27, down 1.6% and 9.2% in the past 24 hours and seven days, respectively.
Featured image from Unsplash, chart from TradingView