Prominent market analyst Mr. Zoom believes that the ongoing decline in XRP ends with the completion of Elliott wave 4.
This was mentioned in a recent analysis amid the ongoing market crash. It is worth noting that the broader cryptocurrency market has been in a bearish phase for most of December despite intermittent recovery efforts.
XRP is one of the victims of this turmoil, unable to break above the $2 price level since it reclaimed that level on December 1 for the first time in seven years. It suffered a pullback after reaching a peak of $2.9 on December 3 and has been consolidating since then.
XRP is about to complete wave 4
In his latest disclosure, Mr. Zoom says that this ongoing bearish consolidation represents the fourth wave of a broad Elliott wave structure.
For context, his charts show that XRP completed wave 1 in September 2024 and traded within wave 2 from September to November 2024. Meanwhile, the upside wave 3 began in early November after Donald Trump won the US presidential election. This wave 3 ended with XRP rising to $2.9 in early December.
As the pullback and consolidation continue, wave 4 has emerged. Mr. Zoom believes that XRP is about to complete this current wave amidst the price falling to the $2.14 area. Once wave 4 is over, the next wave will be an upside one, which bulls can exploit to recover the losses from wave 4.
The data from the chart also shows a bearish channel where XRP has followed the path of wave 4. As wave 4 nears completion, XRP appears to be at the peak of the channel. The start of wave 5 could lead to a rally that will allow the asset to surpass the upper line of the channel.
Wave 5 could push XRP price to $5
Mr. Zoom expects this wave 5-based rally to push the price to $5, which would represent an all-time high and a 133% increase from the current price. However, he insists that this $5 price is a conservative one. Earlier this month, market commentator Vincent Van Cod predicted that XRP would reach this $5 price by February 2025.
The current market condition puts XRP in a position to post higher gains once the broader market recovers. XRP is currently trading at $2.14, but its CCI stands at -116.40, indicating oversold conditions. The last time XRP’s CCI was at -100 was in early November, when it was trading at $0.51.
The current CCI value suggests that XRP still has room for further growth, and a 133% increase is a very possible target. However, to overcome the current bearish condition, XRP must first break above the 20-day SMA at $2.31 and then push above the upper Bollinger Band ($2.54).
