The price structure of XRP is It does not give a clear bullish signalThere are questions about whether the current range will hold and whether there is Another leg will be down.
Cryptocurrency analyst Hof, who has been tracking the structure of XRP on the weekly time frame, has put together a detailed Elliott Wave count on X which identifies exactly where the price is standing and what it should do in the upcoming sessions. To avoid a more serious collapse.
XRP wave structure sends a warning signal
Hof cryptoanalyst He pointed this out The XRP price action coming off the recent lows lacks the kind of impulsive strength that traders look for when a reversal occurs.
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Plotted on the weekly time frame, the Huff chart traces an extended Elliott wave sequence starting from the 2018 XRP cycle high to the 2019/2020 corrective lows, then recovering through the 2021 bull cycle, extending to the current setup.
What the analyst noted is interesting: XRP price action from the recent swing low prints a series of threes, not a clean five-wave impulsive structure. In Elliott Wave Theory, a series of three-wave moves are corrective in nature. It means that the prevailing trend may not have completely reversed and the price is still responding to a larger downward cycle.
The previous forecast was that XRP would break out to a fifth wave from the lows to confirm the bullish intent. This step did not materialize. As long as the price structure is corrective, there is a risk of continuing the downtrend.
Key price levels to watch
In the current situation, XRP has spent the last few days Trading in a range between $1.30 and $1.35. This area has acted as a pivot in recent price action, and losing it could lead to a deeper move lower. Hof specifically warned that a higher time frame below this support would increase the likelihood of a breakdown.
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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 the bullish scenario to continue, but the window is narrowing. “That doesn’t mean we can’t get it back, it just means we have to do it quickly because we’re barely maintaining our main level in HTF,” he said. Hof said.
This important level of the higher time frame appears in the chart as the lower limit of a broad sky support area between $1.45 and $1.70. The bullish scenario will continue as long as the XRP price remains above the high of sub-wave 1 from mid-2023, It is about $0.88.
The first and most immediate bullish scenario requires XRP to reclaim the white box at $1.50 and achieve a higher time frame close above it. A sustained close above this area would see the price move to $1.80.
Featured image from Getty Images, chart from Tradingview.com
