XRP and XLM Elliot Wave Analysis: Close to Key Support – Will an Upturn Follow Soon?

Ripple (XRP) Elliot Wave Analysis

The XRP chart analysis reveals an Elliott Wave correction unfolding within a descending triangle, originating from the yearly high of $2.90. XRP has completed an impulsive wave (labeled 1-5) followed by a corrective structure. Currently, the price is trading within the descending triangle and is approaching key support levels that could dictate the next price movement.

The ongoing corrective phase forms a WXY pattern, with wave Y projected near the 0.618 Fibonacci retracement level at $1.90. The Relative Strength Index (RSI) is declining, indicating weakening momentum. However, if the price respects the triangle’s lower boundary and the critical Fibonacci levels, a bullish reversal could be in play.

Resistance levels are identified near $2.20 (0.5 Fibonacci) and $2.28 (0.382 Fibonacci), while support lies around $1.90 (0.618 Fibonacci). A confirmed breakout from the descending triangle could trigger the next significant move, either upward toward resistance or downward toward lower Fibonacci retracement levels.

The hourly XRP chart highlights the continuation of the corrective phase with a detailed breakdown of the Elliott Wave count within wave Y. The (v) wave of the final C-leg appears to be nearing completion, as the price approaches the crucial support zone within the descending triangle pattern.

A strong rebound could occur if the price holds above the green support zone near $1.90 (0.618 Fibonacci). Conversely, a breakdown below this critical level may intensify selling pressure and push XRP toward $1.64 (0.786 Fibonacci). The RSI remains subdued, signaling limited bullish momentum unless there is a significant market catalyst.

Scenarios indicate that a breakout from the descending triangle could propel XRP to upward targets of $2.20 (0.5 Fibonacci) and $2.28 (0.382 Fibonacci). Alternatively, a failure to maintain the $1.90 support could result in a bearish continuation, potentially driving the price toward $1.64 or lower.

Key Levels to Watch

• Support: $1.90 (0.618 Fibonacci), $1.64 (0.786 Fibonacci).
• Resistance: $2.03 (triangle resistance), $2.20 (0.5 Fibonacci), $2.28 (0.382 Fibonacci).
• Critical Zone: $1.90-$1.64 for potential trend reversal or continuation.
• Bearish Target: Below $1.90, the next support level is $1.64.
• Bullish Potential: Breakout above $2.20 may accelerate bullish momentum toward $2.28.

Stellar (XLM) Elliot Wave Analysis

The 4-hour XLM chart illustrates a descending wedge pattern following an impulsive Elliott Wave structure that peaked in wave (v) at $0.64 on Nov. 23. The correction is forming an ABCDE structure within the wedge, indicating a phase of consolidation.

On Dec. 20 the price fell to a low of $0.31 which could have marked the completion of the corrective structure, but on the following recovery, the price was kept below descending resistance, leaving room for further correction development.

The price is approaching the wedge’s lower boundary, which aligns with the broader support levels near $0.33, suggesting a critical decision point.

The Relative Strength Index (RSI) shows a neutral stance, reflecting reduced momentum. If XLM can break above the wedge’s resistance, bullish targets include $0.40 and $0.45. However, failure to hold support near $0.33 could lead to a bearish continuation toward $0.30 or even $0.25.

There is a high chance the correction ended on Dec. 20, meaning that the consolidation since then it the first sign of the coming upturn. However, the price failed to make a breakout leaving room for another leg down before a decisive move.

Scenarios suggest a breakout in either direction is imminent due to the wedge’s narrowing range. A bullish breakout could trigger a test of key Fibonacci retracement levels, while a bearish breakdown might challenge prior support levels. Volume analysis indicates low participation, implying that a strong breakout would need increased buying or selling pressure.

Key Levels to Watch

• Support: $0.33 (wedge support), $0.30 (lower psychological support), $0.25 (long-term support).
• Resistance: $0.40 (wedge resistance), $0.45 (key horizontal resistance).
• Critical Zone: $0.33-$0.40 for a potential trend breakout.
• Bearish Target: Below $0.33, key levels are $0.30 and $0.25.
• Bullish Potential: Above $0.40, the next target is $0.45.