TLDR
- XRP price consolidates at $2.80 after 20% decline over 45 days
- Key resistance at $3.30 could trigger rally to $4.80-$5.90 targets
- Elliott Wave analysis suggests token in accumulation phase before next impulse
- Futures open interest dropped from $11B to $7.5B, reducing liquidation risks
- SEC reviewing 90+ XRP ETF applications as institutional interest grows
XRP price has stabilized around $2.80 following a correction that pushed the cryptocurrency down nearly 20% over the past six weeks. The digital asset currently trades within a descending triangle formation on daily charts.
Market dynamics show reduced speculative pressure as futures open interest declined from $11 billion to $7.5 billion during this period. This decrease indicates traders have scaled back leveraged positions.
The leverage ratio on major exchanges has reset to yearly averages. This normalization reduces the risk of cascading liquidations that often amplify price declines.
Technical analysts have identified $3.30 as the critical resistance level that could determine XRP’s next major move. A breakout above this threshold may signal the start of a new upward cycle.
Elliott Wave Structure Suggests Higher Targets
Cryptocurrency analyst Dark Defender applies Elliott Wave theory to map XRP’s price trajectory. According to this framework, XRP remains in Wave 2, characterized as a consolidation and accumulation phase.
A successful break above $3.30 could mark entry into Wave 3, historically the strongest impulse wave in Elliott patterns. This phase could drive XRP toward initial targets between $4.80 and $5.90.
Fibonacci extension levels support these projections. The 270.2% extension aligns with the $3.35 breakout zone, while the 261.8% level projects medium-term resistance at $5.90.
Trader Javon Marks maintains his $4.80 price target, noting XRP continues holding above crucial support at $2.47. He suggests this level must hold for the next 66% upward move to materialize.
Market Structure and Support Levels
On-chain data reveals early accumulation signals despite the recent price decline. Net taker volume has shifted toward neutral territory while spot cumulative volume delta shows increased buying pressure.
A fair value gap exists between $2.35 and $2.65, representing potential support if XRP breaks below current levels. This zone aligns with key Fibonacci retracement levels at 0.5 to 0.618 ratios.
The current market structure resembles patterns from Q1 that preceded sharp breakouts. If history repeats, XRP could experience gains of 60% to 85% during Q4.
Regulatory developments may provide additional catalysts. The SEC is reviewing over 90 XRP ETF applications while leveraged futures ETFs received recent approval.
XRP Price Prediction
Short-term resistance sits at $3.30, with a breakout potentially triggering moves toward $3.70 and eventually $4.80. Medium-term targets extend to $5.90 based on Elliott Wave projections.
Downside support remains at $2.70, with the $2.35-$2.65 fair value gap serving as secondary support. A break below these levels could invalidate the bullish outlook.
The combination of technical patterns, reduced leverage, and potential regulatory clarity creates conditions for XRP’s next major price movement in the coming months.
