XRP Market Overview – Elliott Wave Analysis

Currently, XRP has completed its first Elliott Wave impulse to the upside, followed by a prolonged sideways consolidation phase. This consolidation formed a complex corrective structure — an ABCDE pattern, which represents a typical Wave 2 correction within the Elliott Wave framework.

The correction unfolded as five waves within a defined channel. In Wave E, we observed five smaller sub-waves to the downside, signaling the completion of the corrective structure. With this structure now finalized, the market appears ready to transition into Wave 3 — typically the strongest and most impulsive wave in the Elliott sequence.

From a Fibonacci projection perspective, Wave 3 is expected to reach the 1.618 extension level. However, we are setting our take-profit slightly above this level due to a liquidity zone located at 1.4092, which increases the probability of price reaching slightly beyond the standard Fibonacci target.

Trade Setup:

Entry: Market execution (Long position)

Stop-loss: 1.3474

Take-profit: Slightly above the 1.618 Fibonacci extension (above 1.4092 liquidity zone)

This setup aligns with classic Elliott Wave theory, where Wave 3 often delivers strong momentum and extended moves. Risk management remains key, and the stop-loss is positioned strategically below recent structural support.

As always, proper position sizing and disciplined execution are essential.