XRP and ADA Elliott Wave Analysis: Bullish Momenum Builds Up

XRP Price Analysis

XRP 4-hour chart presents a robust impulsive structure forming after a corrective ABC phase. The breakout from the descending triangle near $3.07 (0.236 Fibonacci retracement) propelled XRP into Wave (iv) consolidation, followed by a bullish Wave (v) attempt. The current price action challenges key Fibonacci levels, with immediate resistance at $3.36 (0.5 retracement) and $3.49 (0.618 retracement).

The RSI confirms rising bullish momentum but remains below overbought levels, leaving room for continuation. Wave (iii) demonstrated strong momentum, reaching $3.68 (0.786 Fibonacci extension). The ongoing Wave (v) aims for higher targets, with $3.92 (1.0 Fibonacci extension) acting as the primary bullish target. This level aligns with historical resistances, making it a critical area to watch for price reaction.

However, if momentum weakens, XRP could revisit support levels, with $3.07 serving as the immediate pivot. A deeper retracement could test $2.80, corresponding to prior wave supports. Failure to maintain these levels would invalidate the bullish outlook and signal further downside.

XRP’s bullish trajectory remains intact if the price establishes higher lows and breaks above the $3.36-$3.49 resistance range. The RSI also provides further validation, as sustained upward momentum could confirm the impulsive Wave (v) and target $3.92 or higher.

Key Levels to Watch 

• Immediate Resistance: $3.36 (0.5 Fibonacci retracement).
• Key Resistance: $3.49 (0.618 Fibonacci retracement).
• Critical Resistance: $3.92 (1.0 Fibonacci extension).
• Immediate Support: $3.07 (0.236 Fibonacci retracement).
• Key Support: $2.80 (descending support zone).
• Critical Support: $2.61 (0.786 retracement of prior waves).

ADA Price Analysis

The 4-hour ADA chart shows a corrective Wave 4 completed, giving way to an impulsive Wave 5 structure. After forming a descending channel, the price broke out at the start of January, signaling bullish momentum. Currently, ADA faces stiff resistance between $1.08 and $1.13, where previous Fibonacci retracements and horizontal resistance align. This zone will be critical in determining the next price direction.

It first attempted to overcome this area on Jan. 7 when it came to a high of $1.15. It proceeded to pull back by 23% to a low of $0.88 on Jan. 10 which was later retested on Jan. 13. Its latest attempt was made on Jan. 17 with a slightly higher high of $1.16 but the price found resistance again.

Currently, ADA is sitting at a higher low of $0.99 which if held would imply a bullish outlook.

The recent wave count highlights Wave (i) surpassing $1.01 and challenging the upper resistance range, while Wave (ii) saw a mild retracement to $1.01, aligning with the 0.236 Fibonacci retracement. This consolidation reflects the buildup of buying pressure.

If ADA sustains momentum, the next leg up could form Wave (iii), which targets the 1.618 Fibonacci extension at $1.40. This scenario aligns with broader Elliott Wave principles that suggest a five-wave completion could lead ADA toward $1.75.

RSI supports the bullish narrative by showing a recovery from oversold conditions. However, failure to break above $1.13 could shift the short-term trend bearish, with the next key supports at $0.93 and $0.82. These levels correspond to the 0.382 and 0.5 Fibonacci retracements, respectively, and would offer possible reentry zones for buyers.

For sustained bullish momentum, ADA must reclaim $1.13 decisively, confirming an extended Wave 5. Otherwise, further consolidation could occur within the retracement zone, stalling upward progress temporarily.

Key Levels to Watch (ADA):

• Immediate Resistance: $1.08 (0.236 Fibonacci level).
• Key Resistance: $1.13 (descending trendline).
• Critical Resistance: $1.40 (1.618 Fibonacci extension).
• Immediate Support: $1.01 (recent retracement).
• Key Support: $0.93 (0.382 Fibonacci retracement).
• Critical Support: $0.82 (0.5 Fibonacci retracement).