XRP Defies Market Downturn, Analyst Eyes $5.5 Target

According to crypto technician Hov (@HovWaves), XRP is maintaining its structural integrity on the weekly timeframe despite recent market-wide declines. The current price action around $2.22 remains nested within what Hov identifies as a higher-time-frame impulse wave, with wave iii completed and wave iv currently in progress. This technical framework suggests the cryptocurrency is positioned for a prospective wave v that could drive prices materially higher, indicating underlying strength even as broader digital asset markets experience selling pressure.

The analysis, based on Hov’s Bitstamp chart, reveals that XRP has managed to retain approximately 40% gains from previously identified entry levels despite the market downturn. This relative outperformance underscores the asset’s resilience and suggests that the fundamental technical structure remains intact. The current consolidation phase represents a critical juncture in what appears to be a well-defined Elliott Wave pattern, with the completion of wave iv setting the stage for the next significant directional move.

Hov’s technical roadmap identifies specific Fibonacci retracement levels that serve as crucial reference points for XRP’s price action. The 0.236 retracement sits at $2.094, followed by the 0.382 at $1.548, the 0.5 at $1.213, and the 0.618 at $0.950. Currently, the price has broken down to test the 0.236 neighborhood, probing what Hov describes as a turquoise demand box that overlaps with the 0.382 Fibonacci level at $1.548 on its lower edge.

This support zone gains additional significance due to its alignment with the October 10 liquidity event wick around $1.58, creating a confluence of technical factors that could provide substantial buying interest. Hov emphasizes that while there may be room for “one more small low on the micro before it’s all said and done,” he doesn’t anticipate the price taking out the $1.58 low. The presence of the October wick suggests potential for truncation in the current move, meaning the downward pressure might exhaust itself before reaching deeper Fibonacci levels.

The path to significant upside movement hinges on two critical resistance landmarks identified in Hov’s analysis. The first is a boxed supply region that caps out just below a labeled swing marker at $3.41159, effectively framing $3.41 as the final pivot from the prior leg. More importantly, Hov marks a weekly close above $2.94 as the key validation level that would reassert the impulsive trend and unlock the measured extension to his primary target.

That target is explicitly marked on the chart at $5.558, aligning with the -0.236 Fibonacci extension level. A curved projection path from the current price area arcs through the retracement box and then accelerates vertically toward this objective, annotated with a circled “V” at the terminal portion of the move. This projection is consistent with an impulse wave termination at or near the extension level, representing substantial upside potential from current trading levels around $2.18.

Context from the left side of Hov’s chart reveals the structural importance of the base formation that has supported XRP’s price action. A broad turquoise accumulation band anchored around the $0.43 handle held price throughout 2023-2024, preceding the breakout that staged the current impulse. Above this, a second, higher turquoise band spans the 2021 reaction zone and now serves as the battleground for the present consolidation beneath $3.41.

The visible-range profile overlay inside the consolidation rectangle shows the heaviest traded activity toward the left ridge of the range, underscoring why weekly closes above $2.94 would be decisive for confirming bullish momentum. This technical setup suggests that while XRP may experience some near-term volatility, the broader structure remains constructive for higher prices.

Hov’s bottom-line assessment mirrors the technical evidence presented in his chart analysis. He notes that “XRP [is] holding up exceptionally well on this market wide sell off,” maintaining significant gains from identified entry levels despite broader cryptocurrency weakness. His roadmap retains a “first target” near $5.55, contingent on the critical $2.94 weekly close confirmation. At press time, with XRP trading at $2.18, the technical setup suggests careful monitoring of both the key support zone around $1.58-$2.09 and the crucial resistance level at $2.94 for directional clarity.