XRP bulls are trying to pull off a brutal sell-off into something bigger then a relief. An interesting setup shows a possible three-part boost from the recent low around $1.05, but the entire setup still depends on or can force buyers the price through the levels it broke during the crash.
XRP’s chart is trying to build a three-part momentum
An interesting technical analysis of the XRP price focuses on a possible three-phase recovery structure, with the cryptocurrency’s latest low being around $1.07. serve as a starting point. From there, the projected path shows an impulsive move towards the $1.94 zone, a pullback towards the $1.46 zone and then a much bigger advance towards the higher resistance band between $2.39 and $3.11.
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The interesting graph, that one was shared on X by RWA_Investor, shows a macro corrective range playing out from XRP’s highs above $3 since last year, a classic WXY double zigzag that has taken months of price history. The first leg, Wave W, completed a full ABC decline, bottoming out on the chart in early February with the entry (C)/(W).
A connecting wave X then produced a counter-rally that pushed the XRP price above $1.50 mid May with an internal structure of its own (X)-(A)-(B) sequence before rolling over. That rollover was the start of the latest Y leg, which has now pushed the XRP price back to the $1.12 range at the time of writing.
The impulse setup is back above $3
With the (C)/(Y) wave playing out at the current low around $1.12, the setup is a expected change of correction on a bullish impulse wave.
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The expected move is a three-wave ABC recovery targeting a destination box between $2.39 and $3.11. Wave A is expected to head towards the $2.12 level; However, this projection does not give XRP a free pass. There is a support/resistance trendline around $1.46, which will be the first test, and there is another possible rejection test around $2.12.
Wave B would then return to around $1.46, but this shakeout should not be mistaken for bearishness. Wave C, the last and strongest part of the range, is characterized by a move towards a target zone somewhere between $2.70 and $3.10.
A break above $3.10 could indicate that XRP has already found its macro bottom at $1.05. In that scenario, the three-part structure would start to look like the start of a broader trend reversal to new all-time highs.
If XRP falls below the upper band and loses momentum after the expected recovery, it could eventually return to the $0.75 to $1 range to complete a corrective macro wave 2. analysts have noted the region of $0.87 to $0.92 as a potential bottom target for XRP under a corrective macro wave.
Featured image from Freepik, chart from Tradingview.com