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XRP has been trading above $1.40 in recent days, with buyers still trying to push on momentum after the pullback from the May 10 high. The cryptocurrency’s price has not broken down, but it has also failed to confirm a stronger upside continuation. This leaves the 1-hour chart in an important position. However, the XRP count is still valid.
The current wave count now depends on notable price levels, which include whether XRP can hold above support at $1.40 and avoid a break below the key $1.38 swing low.
XRP Pullback From May 10 Still Looks Corrective
Technical analysis of XRP’s price action on the 1-hour chart, which was posted by a crypto analyst on the social media platform X, shows that the decline from the May 10 high has not been random noise. The main argument in the analysis is that XRP’s decline from the May 10 high has unfolded as a three-wave move. This has unfolded in an ABC structure, not the kind of five-wave impulsive decline that would precede a trend reversal. According to Elliott Wave analysis, three-wave declines are corrective structures, especially when they develop inside a larger range and fail to take out the prior swing low.
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The key swing low is currently around $1.38, and it is now the level holding the current wave count together. This level has also served as an important floor for XRP for the past 30 days, making it the structural base of the short-term setup. A sustained hold above $1.38 would keep the bullish wave count valid, while a break below it would weaken the case for another leg higher.
XRP Price Chart. Source: @Morecryptoonl On X
Price Levels To Watch Out For
The first and most important level to watch is $1.38. This is the swing low holding the current wave count in place. Above that, the nearest support area is the Fibonacci levels between $1.40 and $1.42. These prices are important because they capture the internal B-wave support region. However, this is not the strongest support area, as B-waves can often move through Fibonacci levels before finding a proper reaction.
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At the time of writing, XRP is trading at $1.47. On the upside, the first major resistance to watch is around $1.51, which is the same area XRP failed to sustain after the May 10 high. A daily close above this level would mean that the pullback has ended and that XRP is beginning another rally phase.
After $1.51, the next levels to watch are around $1.59 and $1.67, before the larger projected C zone between $1.75 and $1.76 comes into view. These are all targets based on Elliott Wave counts of XRP’s price action.
Featured image created with Dall.E, chart from Tradingview.com
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