Upcoming XRP Wave C: What Could Drive Prices Below $2?

XRP is currently trading just above the $2 mark. However, a closer look at mid-term charts reveals a complex corrective pattern that may dictate the future price movements of XRP. According to a technical analysis from CasiTrades shared on X, there might still be a final bullish push ahead before the trend shifts downward. The analysis outlines an emerging Elliott Wave pattern that could first elevate XRP's price before potentially leading to a breakdown if support levels do not hold.

Key Takeaways:

Current Price Action: XRP is trading just above $2, with potential for a bullish Wave C push.
Elliott Wave Analysis: If the expected C wave unfolds, XRP could rally above $2.20 before facing potential corrections.
Price Movements: Watch critical price levels around $2.26 to $2.28 for indications of future trends.
Downside Risks: After the C wave, analysts predict a potential decline to around $1.65 based on resistance and rejection levels.

XRP

B Wave Dips Suggest Upcoming C Wave Surge

CasiTrades has conducted a technical analysis of XRP's price action using a 1-hour candlestick chart, indicating that XRP may soon correct below $2. However, this potential drop could only occur after XRP completes its anticipated Wave C, which is expected to push the price above $2.20.

The Wave C is projected to materialize after a recent decline to $2.03 within the last 48 hours. CasiTrades notes that this recent pullback unfolded as a deeper B wave than initially anticipated. Instead of showing tight consolidation, the price exhibited a complete ABC movement and retraced into the 0.618 Fibonacci level around $2.09. This depth in retracement does not invalidate the structure but aligns well with the B wave concept in Elliott Wave theory.

This Fibonacci retracement coincides with tightly clustered Fibonacci levels and previous intraday support. The next significant movement is anticipated to be a rise in Wave 2.

With the B wave now likely completed, focus shifts to the expected C wave rally. CasiTrades marks the golden retracement zone near $2.26 as the primary target for upside potential, with an extension possibility into the $2.28 area, where golden pocket levels and the 1.236 extension converge. The chart underscores this region as a densely populated resistance area, reinforced by past reaction highs and overlapping Fibonacci analyses.

XRP Price Chart XRPUSD currently trading at $2.06. Chart: TradingView

This C wave is anticipated to break down into five smaller waves. If the pattern unfolds as expected, XRP's price movement should reflect a bullish sentiment as it develops its subwaves. However, observing how the price interacts with the $2.26 to $2.28 range will be crucial to validate the broader market outlook and whether a correction is imminent.

XRP Chart XRP Price Chart. Source: @CasiTrades on X

Potential Post-C Rejection Could Drive XRP to $1.65

While the focus is on the potential price push, there remains the risk of a decline once the C wave is completed. Analysts suggest that a rejection could signal the start of a larger Wave 3 drop to the downside after XRP reaches the targeted levels of around $2.26 to $2.28.

If such a rejection occurs, XRP could initiate a sustained downward movement, bringing macro support levels around $1.65 back into consideration. Confirmation of this bearish trend will depend on the formation of the C subwaves and the extent of the price rejection.