Will XRP's Elliott Wave Setup Break Its Resistance Barrier? Learn What's Next!

$XRP is currently displaying signs of hesitation, a topic of intense interest in the latest xrp news. After a robust rebound, it is grappling with key resistance levels that could dictate its next moves. The recent price action aligns with Elliott Wave Theory, hinting that the market may be entering its final consolidation phase before a significant upward movement.

Market Pauses After The Storm

CasiTrades recently provided an insightful market update, highlighting that after last Friday’s sharp market wipeout, XRP prices rebounded impressively. However, there are indications that this momentum is losing steam. According to the analyst, such pauses are a natural occurrence following strong price movements. In the context of Elliott Wave Theory (EWT), this slowdown aligns with Wave 4, a crucial stage where markets consolidate before gearing up for the final impulsive wave.

The analyst also emphasized that markets seldom pivot directly after a significant Wave 3 decline. Instead, they typically undergo an exhausted Wave 5 move to complete the impulse cycle before initiating a new uptrend. Nevertheless, CasiTrades cautioned that the market has yet to display the strength required to invalidate the possibility of a final dip.

Currently, XRP’s price action is stalling near Wave 4 resistance levels. If the market were genuinely experiencing a sharp V-shaped recovery, it would have already surpassed the $2.82 resistance mark with substantial momentum, which has not occurred. Given these conditions, the analyst suggests that one more wave down may be necessary to fully exhaust selling pressure and reset market sentiment.

Market Data Chaos: No “Universal” XRP Chart

The market landscape for XRP has become increasingly complex, with inconsistencies across various exchanges complicating accurate analysis. CasiTrades pointed out that each trading platform recorded different lows during the recent crash. Some pairs fell below $1, while others maintained higher levels. This disparity means that traders should focus on the exchange they are actively using to ensure precision, as no single “universal” XRP chart exists.

On Binance USD, for example, XRP’s price dipped as low as $0.77, representing a staggering 72% drop from local highs and falling below the 0.786 Fibonacci retracement level. While CasiTrades believes that such extreme lows are unlikely to recur, the next potential retracement levels around $1.46 (0.618 Fibonacci level) and the golden pocket near $1.35 remain crucial. These areas align with multiple technical factors, including Wave 5 extensions, macro Fibonacci retracements, and Wave 2 targets.

If XRP were to retest these deeper retracement levels, it could trigger a powerful reversal, potentially setting the stage for the long-anticipated impulsive wave targeting the $6.50 to $10.00 range.

A Silver Lining in Market Chaos

Despite the turmoil caused by the recent market crash, CasiTrades perceives a potential silver lining. The analyst noted that the crash may have shifted XRP’s structure from a shallow Wave 4 correction to a broader macro Wave 2 retracement. This change could precede the strongest impulse waves in the cycle, offering traders a glimmer of hope amid uncertainty.

In conclusion, as XRP navigates its current resistance levels, traders should remain vigilant. Monitoring the evolving price action and keeping an eye on key Fibonacci retracement levels will be essential for capitalizing on potential market movements. For more insights into the dynamic world of cryptocurrencies, be sure to explore our crypto section.