XRP price movements have remained constrained to a tight range between $2.3 and $2.6 over the last few days, with the former reappearing after the market decline. This pullback was expected especially after the XRP price had risen so much in such a small amount of time. With the pullback nearing completion, it signals that the next phase of the trend might be getting started.
XRP Price Moves From Wave A Into Wave B
As the XRP price dipped with the rest of the market between Wednesday and Friday, it slowly marked the end of a phase with its drawdown to $2.36. Crypto analyst Dark Defender explains this in an X (formerly Twitter) post, where he showed where the altcoin is now and where it could be headed next.
Dark Defender referred to the price drawdown as the first leg of the correction in the 4-Hour Time Frame. This comes after the price was able to retest $2.59 in the first wave, which is also known as the A wave. The expectation was that the XRP price would move down to $2.36, and reaching this level signals the completion of the A wave.
Since the A wave is now done, the next thing is for the price to enter into the B wave. The B wave is expected to be bullish as the XRP price could bounce from the lows of the A wave. This recovery is expected to drive the price up another 20% and push it toward $2.57 again.
However, the main focus is not the B wave but actually the completion of the C wave. After the bounce of the B wave to $2.57, the C wave is expected to crash it back down toward $2.36 again, but this is where the real fun begins. Once the bottom is marked with the C wave, then the XRP price is expected to see a major breakout.
This breakout is expected to break through the currently monthly peaks registered in May. First major resistance as the B and C waves go into action is $2.58, with the next major resistance much higher at $3.3333. Then, there are strong supports building for the cryptocurrency at $2.302 and $2.2222 as well in case of invalidation.
The XRP open interest also remains high and steady, showing that investors are choosing to stay in their current positions. This could also mean that traders are waiting to see what the price does next before placing further bets.
Featured image from Dall.E, chart from TradingView.com
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