XRP Elliott Wave Analysis Projects $36 Target in Bull Cycle

Technical analysis of XRP’s weekly candlestick timeframe reveals the cryptocurrency has spent the past several months compressing inside a tightening structure, forming a narrowing support and resistance triangle. According to crypto analyst Dark Defender, this structure represents a classic Elliott Wave pattern that began forming in June, when XRP delivered its initial impulsive rally that formed Wave One. That first advance carried the price from the lower ranges into a new all-time high of $3.65 before losing momentum.

Since reaching that peak, XRP has entered what the Elliott Wave theory identifies as Wave Two – a naturally corrective phase that has dragged the price action sideways. This corrective wave has created lower highs beneath descending resistance and higher lows above the support, with candles now clustering inside the narrowing triangle formation. The technical message from this pattern is straightforward: once the correction exhausts itself, the next phase would be a Wave Three expansion, which Elliott Wave theory identifies as typically the strongest and longest of the five waves.

The analysis identifies two critical levels that now define XRP’s breakout conditions. The support band around $2.22 has held firm throughout the entire consolidation period, providing the foundation of the technical structure. Meanwhile, the resistance line sits at $2.85, a level that has capped every rally attempt since the summer months. According to Dark Defender’s technical assessment, a weekly close above $2.85 would serve as the official trigger that transitions XRP out of Wave 2 correction and into the impulsive third wave.

Conversely, any break below the $2.22 support level would delay the bullish outlook and potentially invalidate the current Elliott Wave count. At the time of the analysis, XRP was trading at $2.31, positioning it precariously between these two critical technical levels. The 8.2% decline in the 24 hours preceding the analysis highlights the volatility inherent at these decision points within technical patterns.

The Fibonacci extension levels applied to the chart provide specific price targets for the anticipated Wave 3 expansion. The first significant checkpoint, representing the 261.8% extension level, is positioned close to $5.85. This would mark the initial leg of the anticipated impulse move following a successful breakout above the $2.85 resistance level.

The wider Wave 3 target extends to the 361.8% Fibonacci level around $18.22, representing a substantial move from current price levels. Following this Wave 3 expansion, the Elliott Wave structure anticipates a Wave 4 pullback to cool the momentum before the final Wave 5 impulse completes the broader pattern. The ultimate target for this final wave reaches into the 423.6% extension level, positioned around $36.76 on the price chart.

This sequential progression through the Elliott Wave structure, from the current compression phase through the anticipated Wave 3 expansion and subsequent Wave 5 completion, forms the basis for Dark Defender’s $36 projection. The analysis suggests that XRP’s technical setup, while currently compressed and showing limited volatility, contains the potential for significant price movement once the pattern resolves.