XRP Elliott Wave Signals Multiple Price Targets

What to Know:

• XRP is analyzed within an ABC corrective structure, potentially indicating where it might bottom out based on different flat scenarios.
• This analysis leverages Elliott Wave Theory to assess potential price movements, a common tool in technical analysis.
• Institutional investors watch such technical patterns to gauge entry and exit points, impacting liquidity and market structure.

XRP has recently experienced a downturn, hitting a low of $1.52 before recovering to around $1.60. This price action has prompted analysts to examine whether XRP is moving within an ABC corrective structure, a concept derived from Elliott Wave Theory. The structure suggests potential stabilization points, but also highlights the risk of further declines depending on the type of flat formation that develops.

XRP ABC Structure Indecisive

Market analyst Charting Guy recently introduced the concept that XRP’s price action aligns with several possible flat formations, each dictating a different trajectory. The critical question is whether the market has already bottomed, is nearing a bottom, or requires another significant drop. Three flat scenarios—running, regular, and expanded—each present distinct outcomes.

According to the analyst, the expanded flat setup appears most plausible. This is because Wave B exceeded the starting point of Wave A but only printed slightly higher highs rather than a sharp surge or double top, a pattern often observed in more aggressive bullish moves.

XRP Weekly Chart Levels

The potential ABC structure is best viewed on the weekly timeframe. According to this chart, Wave A bottomed at $1.61 in April 2025, followed by a rally to a Wave B peak of $3.65 in July 2025. Now trading near $1.60, XRP appears to be in Wave C, with the ultimate low dependent on the type of flat correction in play.

In all flat corrective patterns, Wave C starts at the end of Wave B (around $3.66) and moves downward. The extent of this move varies based on whether the structure is a running flat, regular flat, or expanded flat.

Running Flat Scenario Suggests Limited Downside

In a running flat pattern, Wave B surpasses the start of Wave A, but Wave C does not fall below the Wave A low. If this scenario holds, XRP would not breach the $1.61 level. Typically, in running flats, prices remain above this level, establishing a support range between $1.70 and $1.62. This suggests that XRP might already be near its bottom.

Regular Flat Points to a Slight Break Below Support

In a regular flat structure, Wave B almost fully retraces Wave A’s decline, and Wave C extends slightly past the Wave A bottom. Wave C is typically projected to be 100% to 105% of Wave A’s size. This would place the expected support zone between $1.55 and $1.61, with a potential dip slightly below the $1.61 mark.

Expanded Flat Leads to Much Deeper Declines

An expanded flat pattern sees Wave B push well beyond the start of Wave A, while Wave C stretches far below the previous low, often determined using Fibonacci extensions. Applying a 1.27 extension of Wave A places the downside target at $1.06. A larger 1.618 extension could lead to a drop toward $0.34. This scenario implies XRP could fall anywhere from around $1.50 to near $0.30, depending on the severity of the correction.

Important Caveat

Running flats are less common on larger timeframes, making analysts cautious about assuming XRP has already bottomed. These projections are valid only if the ABC structure holds, but market conditions can always invalidate wave counts. Institutional investors should consider these technical possibilities in the context of broader market dynamics and regulatory developments, which can significantly influence XRP’s price action.

Related: XRP Escrow Balance Shows Ripple’s February Unlocking

Source: Original article