XRP still is look to confirm a strong rebound in price action after a crash that saw that register a huge bearish wick this weekend, and many analysts are anticipating the next big move. According to technical analysis from crypto analyst HovWaves, XRP’s recent crash and rebound could be the early stages of a broader rally that positions the price for a run as high as $8.
XRP Finds Support and Recovers Over 50%
Technical analysis of XRP’s price action on the weekly time frame, which was posted by HovWaves on the social media platform
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This refers to the analyst’s previous outlook, in which he predicted that XRP price would revisit a strong support zone to complete a corrective Elliot cycle Wave 4 formation. This reaction zone, which is between $1.50 and $1.90, is visible in the weekly candlestick timetable below.
Interestingly, the analyst added that the timing of the move surprised him, especially given this new visit was in one strong movement with XRP creating a strong downside fuse. However, XRP’s response from this level was impressive as it immediately gained a nice 50+% bouncing off the support. This rebound confirmed the ongoing Elliott wave count, and the next step is a sub-impulse Wave 5 rally that keeps the bullish momentum in place.
XRP Price Roadmap to $8
The analyst’s prediction is that the first phase of this new impetus could take XRP to the $5.5 level, which he identified as the “first target on the way to our macro target.” Its broader wave projection shows a bigger move towards $8 before the completion of a third higher-grade impulse wave in a larger impulse wave count dating back to July 2024.
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This rally will look like this XRP’s breakout patterns 2017 and early 2021, when higher waves led to huge runs of hundreds of percent. The yellow projection line on the chart also indicates that a brief corrective pullback could form as low as $4.00 before a continuation to $8 could occur. This implies a wave-driven progression rather than a linear increase.
The bullish outlook prompted swift reactions within the XRP community. Cryptoinsightuk, another well-followed XRP analyst, I responded to HovWaves’ message, saying, “This is very similar to what I discussed with all of you for $XRP.”
XRP crashed last weekend has undoubtedly surprised manybut Cryptoinsightuk’s comment shows a growing convergence among technical analysts who see XRP’s structure still in line with a bullish uptrend at the macro level.
At the time of writing, XRP is trading at $2.40, down 4.4% in the past 24 hours, after being rejected around $2.52. Nevertheless, the 50% recovery from the most recent downtrend could indeed turn into the bigger move that HovWaves predicted.
Featured image from iStock, chart from Tradingview.com