XRP's Upward Channel Analysis in Elliott Wave Structure

From a global cycle perspective, XRP has completed the second corrective wave, forming a typical ABC adjustment pattern. This pullback found support at the 50% Fibonacci retracement level, which precisely confirms that, within a larger bullish trend, this correction is a healthy technical retracement rather than a trend reversal signal. For this reason, the technical outlook is fully prepared for the next upward move.

Confirmation of the Second Wave Correction—Assessing the Health of XRP’s Adjustment from the 50% Fibonacci Retracement

In Elliott Wave Theory, the second correction usually does not completely erase the gains of the first wave. XRP’s current correction just stopped at the 50% level, indicating that the decline was constrained by strict Fibonacci ratios, consistent with standard correction characteristics. This orderly adjustment suggests that large funds have not panicked and sold off, but rather are accumulating in preparation for the next major upward wave.

The Arrival of Elliott Wave’s Third Wave—Forecasting a 1.68x Fibonacci Extension Target

Based on the inverse application of Fibonacci grids, we have projected the potential target for the third wave. The third wave in Elliott Wave is typically the strongest, with the most momentum, making it the phase market participants are most optimistic about. According to the current market structure and Fibonacci extension ratio (1.68x), XRP’s third wave is expected to reach a clear target level on the chart. This level is not only derived from mathematical Fibonacci logic but also reflects the current market’s supply and demand equilibrium point.

Technical Framework for Trade Execution—Scientific Setup for Entry, Stop-Loss, and Take-Profit

Built on this combined Elliott Wave and Fibonacci technical framework, the trading setup includes three core elements: First, an automated entry mechanism triggers precisely at key technical levels to capture the start of the third wave’s rise; second, a clear stop-loss is set below the support break point to exit promptly if the market structure fails, controlling risk exposure; finally, take-profit levels are aligned with the projected Fibonacci extension targets, allowing positions to gradually realize gains as the market moves.

This entire analysis is based on the three pillars of market structure, Elliott Wave theory, and Fibonacci levels. It is not a promise of guaranteed results but a systematic trading approach centered on risk management. By strictly following technical rules and proportional relationships, we aim to improve the probability of successful trades.