XRP is still looking to confirm a strong bounce in price action after a crash that saw it register a huge bearish wick over the weekend, and many analysts are anticipating its next major move. According to technical analysis by crypto analyst HovWaves, XRP’s recent crash and bounce could be the early stage of a broader rally that positions its price for a run to as high as $8.
XRP Finds Support And Rebounds Over 50%
Technical analysis of XRP’s price action on the weekly timeframe, which was posted on the social media platform X by HovWaves, noted that the cryptocurrency got the move down into our support level for the expanded flat he was following.
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This is in reference to earlier outlooks by the analyst, where he predicted that the XRP price would revisit a strong support zone to complete a corrective Elliot cycle Wave 4 formation. This reaction zone, which is between $1.50 and $1.90, is visible in the weekly candlestick timeframe chart below.
Interestingly, the analyst added that the timing of the move surprised him, especially considering this revisit was in one strong move that saw XRP create a strong downside wick. However, XRP’s reaction from this level was impressive, as it immediately went on a nice 50+% bounce off the support. This rebound validated the ongoing Elliott wave count, and the next move is a sub-impulse Wave 5 rally that keeps the bullish momentum in place.
XRP Price Roadmap To $8
The analyst’s prediction is that the initial phase of this new impulse could take XRP to the $5.5 level, which he identified as the “first target on the way to our macro target.” His broader wave projection shows a larger move to $8 for the completion of a higher-degree third impulse wave in a larger impulse wave count that goes as far back as July 2024.
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This rally will look like XRP’s breakout patterns from 2017 and early 2021, when higher-degree waves led to massive multi-hundred-percent runs. The chart’s yellow projection line also indicates that a brief corrective pullback could form at just $4.00 before a continuation to $8, implying a wave-driven progression rather than a straight-line surge.
The bullish outlook led to quick responses from within the XRP community. Cryptoinsightuk, another well-followed XRP analyst, replied to HovWaves’ post, saying, “This is extremely similar to what I’ve been discussing with you all for $XRP.”
XRP’s crash over the weekend undoubtedly took many by surprise, but Cryptoinsightuk’s comment shows a growing confluence among technical analysts who see XRP’s structure still in line with a bullish uptrend on the macro level.
At the time of writing, XRP is trading at $2.40, down by 4.4% in the past 24 hours, having been rejected at around $2.52. Nonetheless, the 50% recovery from its most recent downside wick could indeed grow into the larger move predicted by HovWaves.
Featured image from iStock, chart from Tradingview.com
