XRP is currently trading in a sideways range, having shown a slight upward movement overnight. However, it has not yet surpassed the previous swing high of 54.6 cents. If XRP fails to break above this level, the theory that a fifth wave downward has begun remains valid.
Elliot Wave Chart Analysis:
At this stage, the price action could hint at a potential one-two setup leading into a downward wave five. It’s possible that wave four might extend a bit higher, as the price hasn’t yet reached the 38.2% Fibonacci retracement level. As long as XRP stays below the recent swing high, the onset of wave five to the downside could still be in play. Confirmation of this would require a break below the wave one low at 52.1 cents, established on October 5.
Important Price Levels To Keep An Eye On
Currently, the market is showing signs of a bearish flag formation, which could evolve into a broader channel if the price action continues. The immediate resistance level is set at around 57.8 cents, although if wave four extends significantly, it could create a larger corrective wave. Ideally, wave four should not exceed 56.4 cents; a breakout beyond this threshold might indicate a more complex correction pattern unfolding.
If the price does rise above initial resistance, a bullish scenario could emerge. However, this bullish wave count has significant challenges, as there is little evidence to suggest that a wave two has definitively bottomed out. Therefore, the prevailing price action does not currently support a breakout.
When Will XRP Price Breakout?
Recently, XRP has remained within a defined range, and although there was some momentum indicating a potential upswing, the sell-off has weakened this outlook. The sell-off from early October suggests a bearish trend, supporting the idea that we might see further declines.
Looking ahead, the most likely scenario is a continued downward movement, possibly targeting levels around 49 cents or even 45 cents to complete wave B. Following this, we may see a new attempt at an upward impulse.
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