In the ever-evolving landscape of cryptocurrency, XRP finds itself at a pivotal juncture, with technical analysts debating its next directional move. The discourse centers around two primary scenarios: the formation of a bullish double bottom pattern or the initiation of a fifth wave downward, as per Elliott Wave Theory. EGRAG Crypto, a well-known market analyst, highlighted these possibilities in a recent market update, emphasizing key price levels that could determine XRP’s trajectory.
#XRP – Double Bottom or Wave 5 Downward? ?(Update)
As the Aussies like to call it, the "Double Boob" chart! 😄
If #XRP fails to close above the $2.65-$2.70 range, it won't negate wave 4 and will likely lead us down to the 5th wave.
BUT #EGRAGCRYPTO , the #SEC dropping the… https://t.co/WDA5TeqZJU pic.twitter.com/uOKaZuW2hX
— EGRAG CRYPTO (@egragcrypto) March 19, 2025
Double Bottom Formation: A Bullish Prospect
The double-bottom pattern is traditionally viewed as a bullish reversal indicator. This pattern emerges following two successive declines to a similar price level, suggesting robust support and a potential trend reversal. For XRP, the critical threshold lies between $2.65 and $2.70. A decisive close above this range would validate the double bottom formation, potentially propelling XRP towards higher price targets.
EGRAG Crypto identified subsequent resistance levels at $2.97 and $3.40. A close above $3.40 would serve as the ultimate bullish confirmation, setting the stage for XRP to target ambitious price levels between $5 and $8. These projections align with previous macro targets that remain intact, reinforcing the potential for a strong upward trend if XRP can sustain bullish momentum.
Elliott Wave Analysis: The Impending Fifth Wave?
Conversely, failure to breach the $2.65-$2.70 resistance could imply that XRP remains within a corrective phase, specifically wave four of the Elliott Wave sequence. This scenario would anticipate a fifth-wave decline, potentially driving prices down to support levels at $1.71 and $1.60. Such a movement would align with the typical five-wave pattern observed in market corrections, which often conclude before a new bullish cycle begins.
EGRAG Crypto remains firm in the belief that while technical analysis must guide short-term trading decisions, the broader fundamentals surrounding XRP remain positive. Nonetheless, traders must closely monitor price action to determine whether XRP will confirm a bullish reversal or face further downside.
Impact of SEC’s Decision on XRP’s Trajectory
Complicating the technical outlook is the recent announcement by Ripple CEO Brad Garlinghouse that the U.S. Securities and Exchange Commission (SEC) has decided to drop its case against Ripple. This legal victory has injected renewed optimism into the XRP community, with prices experiencing a notable surge. The resolution of this prolonged legal battle is perceived as a significant win for Ripple, potentially enhancing XRP’s adoption and utility in the long term.
EGRAG Crypto acknowledged the importance of this fundamental catalyst, stating that it reinforces belief in XRP’s real-world use case. However, they also emphasized the need to focus on math, numbers, and charts when making short-term trading decisions. While the SEC’s withdrawal is undeniably bullish for the long run, market structure remains a key determinant of immediate price movements.
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Balancing Technicals with Fundamentals
While the SEC’s decision is a fundamental catalyst that could bolster investor confidence, technical analysts urge caution. The immediate price action remains crucial. A sustained close above the $2.65-$2.70 range is essential to confirm a bullish reversal. Absent this confirmation, the risk of entering a fifth-wave decline persists.
EGRAG Crypto maintains that the first bullish confirmation will come from a close above $2.66, followed by a second confirmation at $2.97. However, the ultimate confirmation for a sustained bullish trend would be a break above $3.40. Should XRP achieve this milestone, it would clear the path for the much-anticipated price targets of $5 to $8.
XRP’s current position is a confluence of positive fundamental developments and critical technical thresholds. Traders and investors alike should monitor these levels closely, as they will likely dictate XRP’s short- to mid-term trajectory. Whether XRP establishes a bullish double bottom or succumbs to a fifth wave downward will hinge on its ability to overcome immediate resistance and capitalize on the favorable regulatory outcome.
As EGRAG Crypto aptly put it, while XRP’s long-term future remains promising, the next key test lies in the charts. With macro targets still intact, the market awaits confirmation of whether XRP is ready to rally or if further consolidation is on the horizon.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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