XRP Set for Growth Following Drop to $2.13, Analyst Reports
Short-Term Correction on the Horizon
Crypto analyst Quantum Ascent believes that XRP is gearing up for a significant rally, but only after a brief pullback toward the $2.12–$2.13 zone. In a detailed video breakdown published on May 28, the trader outlined how this dip fits neatly within a broader Elliott Wave framework, suggesting the macro bullish thesis remains intact.
Weekly Chart Signals Macro Elliott Wave One-Two
On the weekly timeframe, XRP appears to have completed a five-wave impulsive advance, printing a clear wave one and wave two pattern. Quantum Ascent emphasized that although the third wave is typically dominant in length and momentum, the current structure exhibits minor deviations that warrant closer inspection rather than invalidation:
- Wave One: Initial rally from sub-$0.50 to ~$1.20.
- Wave Two: Retracement down to approximately $0.60.
- Wave Three: Extension up to $2.71, slightly shy at $2.66.
- Wave Four: Underdeveloped retracement left for the next phase.
- Wave Five: Concluding push forming macro wave one.
“We hit $2.66 instead of $2.71—five cents off. Now we’re in a corrective phase, but the weekly structure still shows a textbook one-two,” the analyst remarked.
12-Hour and Daily ABC Corrective Pattern
Zooming into shorter 12-hour and daily charts, Quantum Ascent identified an ABC corrective pattern unfolding as part of wave two. Key technical inputs include:
- Wave A: Drop from $2.66 to $2.30.
- Wave B: Snap-back rally to $2.52.
- Projected Wave C: Target matching Wave A length, near $2.12–$2.13.
This projected zone coincides with the 50% Fibonacci retracement of the prior impulsive leg and aligns closely with the low of the previous fourth wave, a typical support confluence area.
On-Chain Metrics Support Bullish Thesis
Beyond pure chart patterns, on-chain data provides supplementary evidence for a bullish outlook:
- Active Addresses: Growth in daily unique addresses by 18% month-over-month signals rising network usage.
- Transactional Volume: Consistent daily volume above 1 billion XRP indicates sustained liquidity.
- Whale Accumulation: Addresses holding >1 million XRP have increased their balances by 4% in the past two weeks.
“Stronger on-chain fundamentals bolster the Elliott Wave case. Accumulation by large holders suggests confidence ahead of the next leg up,” noted blockchain analyst Maria Chen at CryptoMetrics.
Macroeconomic & Regulatory Considerations
While technicals dominate this analysis, broader market forces and regulatory developments cannot be ignored:
- U.S. SEC Litigation: The ongoing Ripple vs. SEC case remains a wildcard; any favorable motion could act as a catalyst for renewed buying interest.
- Interest Rate Environment: A potential dovish pivot by the Federal Reserve may lift risk assets, including altcoins like XRP.
- Global Payment Use Cases: XRP’s utility in cross-border remittances continues to attract partnerships in Asia and Europe.
Risk Management and Trading Strategies
In light of the anticipated pullback, traders should consider the following risk controls:
- Staggered Entry: Deploy buy orders in 10–15% increments between $2.20 and $2.13.
- Stop-Loss Placement: Situate protective stops just below $2.05 to limit downside exposure.
- Profit Targets: First take-profit zone near $2.80, with a secondary target above $3.20 if wave three materializes.
Conclusion
If XRP holds the $2.12–$2.13 support band and forms a bullish reversal pattern, Quantum Ascent expects the next impulsive wave to propel prices beyond $2.80. At the time of writing, XRP is trading at $2.29. Traders should monitor both technical levels and evolving regulatory news as potential triggers for the anticipated breakout.