In recent days, XRP quotes have exceeded $1.40, and buyers are still not giving up trying to push dynamics after retreating from the maximum on May 10. Cryptocurrency price has not deteriorated, but it was also not possible to confirm a stronger continuation of growth. This puts the 1-hour chart in an essential position. However, the XRP number is still valid.
The current number of waves now depends at significant price levels, which include whether XRP can hold above the support at $1.40 and avoid a break below the key low at $1.38.
The XRP pullback from May 10 still looks to be on the mend
Technical analysis of XRP price action on 1-hour chart which was published by cryptocurrency analyst on social media platform X shows that the drop from the May 10 high was not random noise. The main argument in the analysis is that the decline in XRP from the May 10 high developed as a three-wave movement. This occurred in an ABC pattern, rather than as a five-wave impulse decline that would precede a trend reversal. According to Elliott Wave analysis, three-wave declines are corrective structures, especially when they expand to a greater extent and fail to break the previous low.
The key swing low is currently around $1.38 and this is currently the level connecting the current wave count. This level has also served as an essential low for XRP over the last 30 days, making it a structural basis for the short-term setup. A sustained hold above $1.38 would keep the number of bullish waves going, while a break below would weaken the case for another upside leg.
XRP price chart. Source: @Morecryptoonl on X
Price levels to watch out for
The first and most essential level to watch is $1.38. This is the lowest swing stores the current number of waves on site. Above the nearest support area are Fibonacci levels between $1.40 and $1.42. These prices are essential because they take into account the internal support area of wave B. However, this is not the strongest support area because B waves can often move through Fibonacci levels before finding the appropriate reaction.
At the time of writing, the price of XRP is $1.47. On the other hand, the first major resistance worth watching is around $1.51, the same area that XRP failed to hold after its May 10 high. Closing the day above this level would mean the end of the pullback and XRP entering another phase of growth.
After $1.51, the next levels to watch are around $1.59 and $1.67 before a larger projected C zone emerges between $1.75 and $1.76. These are all targets based on Elliott Wave counts of XRP price action.
Featured image created with Dall.E, chart from Tradingview.com
