XRP may be approaching a significant bullish phase after completing its Wave 2 correction, according to market analyst CryptoBullet. The analyst highlighted technical signals suggesting the cryptocurrency could soon start Wave 3, which may bring a notable price advance if confirmed by the market. Before this scenario unfolds, XRP must break through a major resistance: the 350-day moving average currently near $1.45.
Elliott Wave analysis signals potential rally
CryptoBullet, a market analyst known for technical charting, shared an updated view on XRP’s price action using Elliott Wave theory. This model often tracks market movements through recurring upward and corrective waves.
Reviewing recent trends, CryptoBullet identified an initial jump in September as Wave 1, during which XRP rose from about $0.98 to $1.70. After this move, the cryptocurrency entered a corrective phase, with the C section of the correction reaching as low as $1.20. The analyst now highlights that the recent decline may represent the completion of Wave 2, setting the stage for a new bullish impulse.
CryptoBullet indicated that XRP may stand at the early stage of Wave 3, following the end of its corrective move, and stated that a breakout above the 350-day moving average is required for confirmation.
Potential targets for the next rally were suggested at $1.45, $2.00, and $2.90, referencing Fibonacci extension levels on the chart. However, CryptoBullet emphasized that these numbers are projections and do not guarantee future price movements.
Mini dictionary: Elliott Wave theory is a method of technical analysis that interprets price movements in markets as a series of repeating waves, often used to forecast future trends based on investor psychology and market cycles.
350-day moving average becomes key obstacle
The 350-day moving average, colored purple on CryptoBullet’s chart, was identified as XRP’s primary resistance area. The average currently sits near $1.45, just above the most recent price action, and serves as a barrier against further advances.
Other traders also addressed the significance of this level. An X user named Jemi described the 350-day moving average as the critical trigger for starting a new upward move, cautioning that a rejection here could extend XRP’s corrective period. Another commentator, Teddy, observed that XRP remains technically weak unless buyers can support a breakout and sustain the price above this moving average.
Several market participants underlined that XRP needs to surpass the 350-day moving average to confirm a potentially sustained breakout and begin a broader bullish phase.
| Technical Indicator | Current Value | Resistance Level | Next Targets (Fibonacci-based) |
|---|---|---|---|
| 350-day moving average | ~$1.45 | Yes | $2.00, $2.90 |
| RSI | 49.5 | No | N/A |
| Price (as cited) | $1.307 | Immediate | $1.45 |
Market opinions and outlook
Sentiment among technical analysts and prominent XRP supporters remains divided. Cryptollica, another community observer, pointed to XRP’s history of prolonged sideways trading, sometimes followed by sudden upward movements. CandleScope referenced current metrics, citing a price of $1.307 and an RSI reading of 49.5, while emphasizing the 350-day moving average as the nearest target.
Despite the cautious optimism, most analysts agree that XRP’s near-term direction depends on a clear breakout above the long-term average. Until that occurs, market participants note that XRP’s technical landscape remains vulnerable to further corrections.
