The XRP price is nearing the final stages of an ABC correction, potentially setting the stage for a strong recovery. According to a crypto analyst, the XRP price may decline further before making a move to the upside. As the final leg unfolds, the altcoin may soon present new price targets for a compelling buying opportunity.
XRP Price Correction To Open Buy Window
A pseudonymous crypto analyst known as Blockchain Backer on X (formerly Twitter) has announced to his over 300,000 followers that XRP is getting ready for another price correction. This pullback target will represent a buying opportunity for traders who wish to take advantage of low prices in hopes of a potential rebound.
In his chart analysis, Blockchain Backer revealed that the XRP is deep in Wave C of an ABC correction on the 4-hour chart. An ABC correction is a continuation chart pattern that signals that the price of a cryptocurrency is likely to move in the same direction as the previous trend before the ABC corrective wave. Notably, this pattern is a key movement within the Elliott Wave Theory, which indicates a potential pullback and can be used to determine trading opportunities.
According to the analyst, after a failed recovery attempt, the XRP’s price has now broken down below its 200-day Moving Average (MA)—a standard bearish signal. However, the analyst believes that this recent breakdown represents a capitulation, which is a necessary step before the market reverses its course.
Interestingly, XRP’s ABC correction has followed a textbook structure, with Wave A marked by an initial sharp decline. Following this, Wave B provided a temporary relief rally for the price. Currently, Wave C is targeting lower levels and showing signs of nearing completion.
The projected bottom for Wave C has been set at the $1.40 to $1.50 range, highlighted by the green demand zone on the price chart. This area aligns with historical support levels and the 0.786 Fibonacci retracement, further reinforcing it as a potential reversal zone.
Based on Blockchain Backer’s analysis, the $1.40 – $1.50 zone, which presents a 24% decline from XRP’s current market value, stands out as a strong entry point for buyers seeking a discounted opportunity. If the past pattern holds, the altcoin could see a recovery once Wave C plays out. For now, however, the cryptocurrency continues to face market volatility as it aims to avoid a deeper price crash.
Update On The Price Action
In the past 48 hours, XRP plunged to a low of $1.68, marking a steep drop of over 20%, according to CoinMarketCap’s data. However, the cryptocurrency quickly experienced a recovery and is back up to $1.86 after jumping by 9.62% in just 24 hours.
This sudden rebound has caught the market off guard, with many wondering if whales are driving this upward momentum. Alongside its price surge, XRP’s trading volume has climbed 13.14%. Despite the broader market turmoil, the cryptocurrency has remained resilient, holding steady and showing signs of bullish growth that defies present negative trends.
Featured image from iStock, chart from Tradingview.com
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