XRP has been trading above $1.40 for the past few days, with buyers still available try to push through momentum after the pullback from the May 10 high. The price of the cryptocurrency has not been broken off, but it has also failed to confirm a stronger upward continuation. This puts the 1-hour chart in an important position. However, the XRP count is still valid.
The current number of waves now depends at remarkable price levels, including whether XRP can hold above the $1.40 support and avoid a break below the key $1.38 swing low.
XRP pullback from May 10 still looks corrective
Technical analysis of XRP’s price action on the 1-hour chart, which was posted by a crypto analyst on social media platform X shows that the decline from the May 10 high is not random noise. The main argument in the analysis is that XRP’s decline from the May 10 high has unfolded as a three-wave move. This has unfolded in an ABC structure, and not the kind of impulsive five-wave decline that precedes a trend reversal. According to Elliott Wave analysis, three-wave declines are corrective structures, especially when they develop within a wider range and fail to negate the previous swing low.
Related reading
The key swing low is currently around $1.38, and this is now the level that holds the current wave count together. This level has also served as a key floor for XRP over the past 30 days, making it the structural foundation of the short-term setup. A continued hold above $1.38 would keep the bullish wave count valid, while a break below would weaken the case for another leg higher.
XRP price chart. Source: @Morecryptoonl On X
Price levels to watch out for
The first and most important level to watch is $1.38. This is the swing low keeping track of the current wave count in place. Above that, the nearest support area is the Fibonacci levels between $1.40 and $1.42. These prices are important because they cover the internal B-wave support region. However, this is not the strongest support area as B waves can often move through Fibonacci levels before finding a proper response.
Related reading
At the time of writing, XRP is trading at $1.47. On the plus side, the first major resistance to watch is around $1.51, which is the same area where XRP failed to hold after the May 10 high. A daily close above this level would mean the pullback has ended and XRP is entering a new rally phase.
After $1.51, the next levels are around $1.59 and $1.67, before the larger expected C-zone between $1.75 and $1.76 comes into view. These are all targets based on Elliott Wave counts of XRP’s price action.
Featured image created with Dall.E, chart from Tradingview.com