Analyst Outlines XRP Price Strategy Using Bitcoin Chart Insights

A market analyst has provided a comprehensive analysis of XRP prices by utilizing the Bitcoin (BTC) chart and its price movements for reference. The analyst anticipates a bearish outlook for XRP in the near future due to ongoing market volatility and changing investor sentiment. While highlighting potential downside targets, she employs Elliott Wave theory to identify resistance levels, indicating possible declines for XRP.

Key Takeaways

The analyst presents a bearish short-term outlook for XRP, with significant risks ahead.
A five-wave Elliott Wave decline has been identified on XRP's one-hour chart, concluding around the $1.362 support zone.
An ABC correction pattern is expected to push XRP upwards temporarily towards the $1.51 resistance level.
A potential Wave 3 decline could lead prices as low as $1.12 or even the $0.87 macro support level.
XRP's recent price activities have shown a decline of over 6% in the last week, attributed to market instability and geopolitical tensions.

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XRP Price Analysis Using Bitcoin Patterns

Tara, the market analyst, has shared her insights on XRP by analyzing patterns she observed in the Bitcoin chart. She emphasizes caution, warning traders that the bounce in XRP prices may be misleading, suggesting that significant downside risks remain.

Tara noted that a full five-wave Elliott Wave decline is visible on XRP's one-hour chart, concluding its Wave 5 sell-off near the $1.362 support level, which is marked as a strong horizontal support.

From this low point, XRP has begun to make a corrective move upward, which Tara categorizes as an ABC correction. This consists of an initial Wave A rally, followed by a Wave B dip, and a projected Wave C push that she expects will drive the price higher temporarily.

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Source: Chart from Tara on X

Immediate XRP Price Outlook

The analyst explained that, similar to Bitcoin, XRP is currently positioned for a Wave 2 or Wave 5 retracement targeting the 0.618 resistance level at $1.51. This level coincides with a 1:1 measured move upward. However, she clarified that this upward movement is marked as bearish and should not be mistaken for a return of bullish momentum in the market.

Tara cautioned that this movement might mislead many bulls. Traders may mistake the temporary rally for an actual breakout, only to find themselves surprised when the subsequent wave begins. Based on her analysis of the Elliott Wave structure, she encourages traders to anticipate the next wave that could emerge once the retrace is complete near the $1.51 resistance level highlighted on the chart.

Meanwhile, she indicated that Wave 3 is the next significant shift to monitor. This wave could bring prices down to a Double Bottom around $1.12. Additionally, she mentioned that the $0.87 macro support level remains a probable and valid target, indicating a much more substantial pullback from the current price levels.

Current XRP Price Action Update

Currently, XRP is trading at $1.37 after failing to break and maintain levels above the $1.40 resistance. According to CMC data, XRP's price performance has been predominantly bearish over the past two weeks, having fallen by more than 6% in the last week and over 3% in the past 24 hours.

The recent price decline has been fueled by a lack of strong bullish drivers in a market characterized by high volatility and ongoing geopolitical issues. XRP's prevailing bearish technical structure and negative sentiment have also greatly impacted its price momentum.

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XRP trading at $1.37 on the 1D chart | Source: XRPUSDT on Tradingview.com