XRP Elliot Waves Analysis: Ripple is Continuing to Consolidate

XRP Price Analysis

XRP’s 4-hour chart reveals a completed five-wave impulsive structure that peaked near $3.00 on Dec 2. Following wave 5 completion, the price made a sharp downturn of 31.7% to a low of $2 on Dec. 10, initiating a corrective phase.

A recovery occurred but the price was kept below its prior high, only coming to $2.70 on Dec. 17 which was the second sub-wave of the developing WXY complex correction count. Another downturn followed, retesting the prior low of $2 on Dec. 20 but that wasn’t the end of this correction, and instead we saw yet another retest on Dec. 30.

This correction has been confined within the boundaries of the descending flat triangle with its horizontal support being at $2.

The WXY corrective pattern is characterized by lower highs and higher lows, indicating market indecision. The last retest of the $2 support on the Y wave resulted in a new bullish upturn. This confluence suggests a strong base for potential bullish momentum, as the price gained 26%, coming to a high of $2.50 on Jan. 3.

The daily Relative Strength Index (RSI) came to the oversold zone on Dec. 30 validating the price bottom, but on its latest high reached the overbought zone causing another reversal. The price fell by nearly 10%, reaching a low of $2.26 yesterday, Jan. 7, and is now consolidating.

XRP trades above $2.30, remaining relatively neutral, oscillating around 40–50 of the RSI. This indicates neither overbought nor oversold conditions, reinforcing the consolidation narrative. However, a decisive move above $2.38 (local resistance) could invalidate further downside potential and trigger the next impulsive wave.

XRP Price Prediction

Zooming into the 1-hour chart, XRP appears to be in the midst of a three-wave corrective (ABC) structure, following an impulsive wave that peaked near $2.50 on Jan. 4. Wave A initiated a pullback to $2.33, with wave B making a recovery to a lower high of $2.46 on Jan. 7.

Currently, the price is in wave C which could be either over or near completion, targeting the 0.618 retracement at $2.20 as another lower low. This is anticipated to be the second sub-wave of the higher degree count, meaning that its next move should be the continuation of the uptrend from Dec. 30.

XRP is now consolidating after its latest downtrend and some early bullish signs have been seen. There is a strong chance that the decline ended but further confirmation is needed which would come with an immediate rise.

However, should the price find resistance at the local high of $2.33 another lower low to $2.20 area will look more likely. Either way, a new strong uptrend could be expected marking the continuation of the breakout momentum. According to the projected scenario, the downturn from Jan. 4 is a pullback that will form a higher low, validating buyer’s interest.

A bullish reversal could form if $2.20 support holds, initiating a new five-wave impulsive structure. The immediate upside target for the next developing uptrend should be higher values than on Jan. 4, meaning the price should reach the $2.70 area and confirm the bullish momentum.

However, a breach below $2.20 would invalidate this bullish outlook, opening the door for further declines toward $2.10 or even $1.98 (key Fibonacci retracement levels). RSI momentum on this lower time frame shows mild bullish divergence, hinting at potential recovery from current levels if price action is confirmed.

Key Levels to Watch

• Immediate Resistance: $2.38 (0.236 Fibonacci retracement).
• Secondary Resistance: $2.50 (local peak).
• Major Resistance: $2.77 (prior high and structural resistance).
• Immediate Support: $2.24 (0.5 Fibonacci retracement).
• Key Support: $2.20 (0.618 Fibonacci retracement).
• Critical Support: $1.98 (1.0 Fibonacci retracement and structural support).
• Short-Term Target: Above $2.77 if momentum sustains.
• Invalidation Zone: Below $2.20, signaling further bearish potential.