The XRP price structure is does not give a clear bullish signaland there are questions about whether or not the current range will hold will be another leg down.
Crypto analyst Hov, who has been tracking the structure of XRP on the weekly time frame, has put together a detailed Elliott Wave count for to prevent a more serious defect.
XRP wave structure sends a warning signal
Crypto analyst Hov pointed this out the XRP price action coming off the recent lows lacks the kind of impulsive strength traders look for when a reversal is underway.
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Hov’s chart, drawn on the weekly time frame, outlines an extended Elliott Wave series, starting from
What the analyst observed is interesting: the XRP price action from the recent swing low is printing a series of threes, and not a pure five-wave impulsive structure. In Elliott Wave theory, a three-wave series of movements is naturally corrective. It implies that the dominant trend may not have completely reversed yet and price could still respond to a larger down cycle.
The previous expectation was that XRP would hit a fifth wave off the lows to confirm the bullish intent. That step was not realized. As long as the price structure is corrective, there are risks of continuation of the downward trend.
Important price levels to keep an eye on
As it stands now, XRP has spent the last few days trade in a range between $1.30 and $1.35. This zone has served as a linchpin in recent price action, and losing it could lead to a deeper move down. Hov specifically warned that a longer time frame under this support would increase the likelihood of an outage.
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The 12-hour chart also shows a deeper support area closer to the $1.15 range, which is based on the 0.5 Fibonacci retracement level. If the current level fails, that area becomes the next logical target.
There is still room for a bullish scenario, but the window is narrowing. “That doesn’t mean we can’t fix it, it just means we have to do it quickly because we are barely maintaining our key level at HTF,” Hov said.
That key higher time frame is visible on the chart as the lower boundary of a broad cyan support zone between $1.45 and $1.70. The bullish scenario will play out as long as the XRP price remains above the sub-wave 1 high from mid-2023. that’s about $0.88.
The first and more immediately bullish scenario requires XRP to reclaim the white box at $1.50 and reach a higher time frame above. A sustained close above this zone would trigger the price action towards $1.80.
Featured image from Getty Images, chart from Tradingview.com