According to prominent market analyst Mr. Xoom, XRP’s ongoing price pullback signals the completion of Elliott Wave 4, setting the stage for a bullish Wave 5.
This rally could drive XRP to new highs, with a projected price target of $5, representing a 133% increase from its current value of $2.14.
Elliott Wave Analysis of XRP
Recent Waves
- Wave 1: Began in September 2024, marking the initial bullish breakout.
- Wave 2: A corrective phase lasting from September to November 2024.
- Wave 3: A sharp rally starting in early November 2024, coinciding with Donald Trump’s U.S. presidential victory, driving XRP to $2.9 on December 3.
Wave 4 Consolidation
- After peaking at $2.9, XRP entered Wave 4, a pullback phase characterized by bearish consolidation.
- XRP has been trading within a descending channel, with prices reaching as low as $2.14.
Signs Wave 5 Is Imminent
- Completion of Wave 4:
XRP appears to be concluding Wave 4 as it nears the apex of the descending channel. - Oversold Conditions:
- CCI (Commodity Channel Index): XRP’s CCI stands at -116.40, suggesting oversold conditions.
- Historical Data: The last time the CCI hit similar levels, in November 2024, XRP rebounded from $0.51 to start its Wave 3 rally.
- Technical Indicators:
XRP must break above key resistance levels to confirm the start of Wave 5:- 20-day SMA (Simple Moving Average) at $2.31.
- Upper Bollinger Band at $2.54.
Wave 5 Price Target
Primary Target: $5
- Mr. Xoom predicts Wave 5 could push XRP to $5, a new all-time high.
- This price level represents:
- 133% Increase from the current price of $2.14.
- A significant milestone, last reached during XRP’s 2017 bull run.
Higher Potential: $5+
- Conservative Estimate: $5 is considered a modest target, with further gains possible if the market strengthens.
- Market commentator Vincent Van Code also projects XRP to hit $5 by February 2025.
Market Outlook and Challenges
Broader Market Conditions
- Bearish Trends:
The crypto market has faced persistent downward pressure throughout December 2024. - Recovery Potential:
XRP’s ability to rally hinges on a broader market recovery.
Resistance Levels
- XRP must surpass key resistance zones to confirm bullish momentum:
- $2.31 (20-day SMA).
- $2.54 (Upper Bollinger Band).
If XRP completes its Wave 4 consolidation, the expected Wave 5 rally could push prices to $5 or beyond. This optimistic projection aligns with the technical indicators and market conditions. While challenges remain, XRP’s oversold status and strong historical performance suggest significant upside potential.
