XRP once again defended the critical $2.17 support zone despite an 18% monthly drawdown, bouncing into tight consolidation as analysts identify a potential Elliott Wave reversal setup that may mark the end of the corrective cycle.
News Background
- XRP endured a volatile session after spending the last month under heavy selling pressure. Market sentiment softened further earlier in the week before stabilizing as the token approached long-standing trend support.
- The session’s most notable development came at 15:00 UTC when trading volume exploded to 202.7 million tokens — 158% above average — propelling XRP briefly to $2.28 before immediate rejection.
- Technical analysts note that recent price action aligns with the possible completion of the asset’s broader corrective structure.
- Elliott Wave specialists argue the final leg of the ABC correction likely reached technical exhaustion near $1.88 earlier in the month, a region aligning with major Fibonacci extensions that historically mark cycle lows.
Price Action Summary
- XRP traded in a whipsaw $0.11 range between $2.17 and $2.28 throughout Tuesday’s session.
- After the heavy rejection from $2.28, price retreated toward the $2.17 floor before stabilizing in a narrow $2.18–$2.19 band.
- Late-session action showed constructive accumulation, with XRP climbing from $2.183 to $2.188 as volume spikes at 02:12 and 02:15 (387K and 427K) supported the recovery.
- The bounce off $2.17 and the ability to hold above $2.18 suggest early rebuilding of bullish structure after the earlier rejection.
Technical Analysis
- XRP’s defensive performance around $2.17 signals buyers are still active around key demand zones despite the monthly decline.
- The declining peaks of the past week still define a descending resistance structure, but multi-stage consolidation above $2.184 signals accumulation rather than continued distribution.
- The $2.22 region now acts as the pivot for broader trend reversal. Elliott Wave analysis suggests XRP has completed its Wave-4 corrective structure, with the sequence bottoming near $1.88 at the 161.8% Fibonacci extension — a level commonly associated with the end of deep corrective waves.
- A sustained close above $2.22 is considered the technical trigger for the start of Wave-5 expansion.
- If validated, long-term Fibonacci projections place the extended upside target near $5.85 (261.8% extension), though XRP must first reclaim $2.22, then $2.28 to confirm breakout strength.
- Volume behavior supports the reversal thesis: heavy buying during the $2.28 test followed by smaller, persistent accumulation near $2.18 suggests positioning ahead of potential breakout attempts.
What Traders Should Know
- XRP sits at a pivotal inflection point. Holding $2.17 is essential for preserving the emerging reversal structure.
- A close above $2.22 would signal the first legitimate bullish confirmation in weeks and potentially activate broader Wave-5 targets.
- Failure below $2.17 reopens $2.10 and $1.98, invalidating the bullish count.
Given strengthening ETF flows, recovering intraday accumulation, and the possibility of a completed corrective wave, XRP’s trajectory over the next 48–72 hours may determine whether the token begins a new macro expansion phase — or re-enters deeper consolidation.
