In a recent analysis by market analyst Mr. Xoom, it was revealed that the ongoing XRP pullback is likely the completion of Elliott Wave 4. The broader crypto market has been experiencing a bearish phase in December, with XRP unable to surpass the $2 price level since Dec. 1. After reaching a peak of $2.9 on Dec. 3, XRP has been consolidating, leading to the formation of Wave 4.
According to Mr. Xoom, the current bearish consolidation represents the fourth wave of an extensive Elliott Wave structure. XRP completed Wave 1 in September 2024 and went through Wave 2 from September to November 2024. Wave 3 began in early November after Donald Trump’s U.S. presidential election victory, culminating in XRP reaching $2.9 in early December. With the pullback and consolidation, Wave 4 is now in progress, expected to be completed soon.
Data from the chart shows a descending channel pattern as XRP followed the trajectory of Wave 4. With Wave 4 nearly complete, XRP appears to be at the peak of the channel. The start of Wave 5 could trigger a rally pushing XRP to breach the upper trendline of the channel. Mr. Xoom believes that this Wave 5 rally could drive prices to $5, a new all-time high and a 133% increase from the current price.
Despite the current market conditions, which have XRP trading at $2.14, its CCI indicates potential oversold conditions with room for growth. The last time XRP’s CCI was at -100 was in early November when it was trading at $0.51, suggesting that higher gains could be on the horizon. To overcome the current bearish state, XRP needs to surpass the 20-day SMA at $2.31 and then break through the upper Bollinger Band at $2.54.
Market commentator Vincent Van Code has also predicted XRP to reach $5 by February 2025, aligning with Mr. Xoom’s analysis of a potential Wave 5 rally pushing the price to that level. The completion of Wave 4 and the subsequent bullish Wave 5 could offer an opportunity for bulls to recover losses incurred during Wave 4. Once the broader market begins to recover, XRP may experience even greater gains beyond $5, positioning itself for significant growth in the future.
