XRP Price Analysis: Technicals Point to Potential $8 Rally

XRP’s recent price action has captured the attention of technical analysts after the cryptocurrency experienced a substantial crash over the weekend, creating what market observers describe as a ‘huge bearish wick.’ According to analysis by crypto expert HovWaves, this downward movement brought XRP precisely into a crucial support zone between $1.50 and $1.90, completing what he identifies as an expanded flat correction within the Elliott wave cycle. The timing of this move surprised the analyst, particularly given that the revisit occurred in one strong downward thrust.

The market’s reaction from this support level proved immediately impressive, with XRP bouncing more than 50% from the identified support zone. This robust recovery validated the ongoing Elliott wave count that HovWaves had been tracking, confirming the completion of what technical analysts refer to as Wave 4 in the corrective cycle. The strength of this rebound suggests that the foundational support levels are holding firm, providing a springboard for the next potential phase of upward momentum.

HovWaves’ technical analysis points to a compelling bullish scenario unfolding for XRP. With Wave 4 correction now complete, the stage appears set for what Elliott wave theorists call a ‘sub-impulse Wave 5 rally’ that would maintain the broader bullish momentum. The analyst’s projection indicates that the initial phase of this new impulse could carry XRP to approximately $5.50, which he identifies as the ‘first target on the way to our macro target.’

The broader wave projection reveals an even more ambitious outlook, with HovWaves forecasting a larger move to $8 for the completion of what he describes as a ‘higher-degree third impulse wave’ in a larger impulse wave count dating back to July 2024. This projected rally pattern bears striking resemblance to XRP’s historic breakout movements from 2017 and early 2021, periods when similar higher-degree waves preceded massive multi-hundred-percent price runs that captured market attention.

The technical roadmap isn’t without potential obstacles. The chart’s projection line indicates that XRP might experience a brief corrective pullback around the $4.00 level before continuing its ascent toward the $8 target. This suggests a wave-driven progression rather than a straight-line surge, characteristic of healthy technical advances that incorporate periodic consolidation phases.

The bullish technical outlook has generated significant discussion within the XRP analytical community. Cryptoinsightuk, another well-followed XRP analyst, responded to HovWaves’ analysis by noting, ‘This is extremely similar to what I’ve been discussing with you all for $XRP.’ This convergence of analytical perspectives suggests growing consensus among technical experts who see XRP’s underlying structure remaining aligned with a bullish macro trend despite recent volatility.

At the time of writing, XRP trades at $2.40, reflecting a 4.4% decline over the past 24 hours after encountering resistance around the $2.52 level. While this short-term rejection might concern some traders, the broader context reveals a more optimistic picture. The 50% recovery from the recent downside wick demonstrates substantial buying interest at lower levels, providing technical validation for the potential larger move predicted by HovWaves and echoed by other analysts in the space.