Analyst’s ABC Correction Forecast Plays Out Perfectly, Second Half Predicts Bullish Impulse To $2.8
Over the past eight weeks or so, XRP’s price action has seen significant volatility, with Intense trading activity We haven’t seen each other for more than six years. After Donald Trump won the US presidential election on November 5, 2024, the value of XRP surged by more than 400%, Reached a peak of $2.90 It was launched on the cryptocurrency exchange Binance on December 3.
However, XRP price has experienced a downturn over the past week. Interestingly, this XRP price correction appears to be following an ABC correction path, where technical analysis hints at further economic downturn before the next leg goes up.
XRP Price Sees ABC Correction
The correction in XRP price since reaching the $2.9 mark has been highlighted by an ABC pattern that is almost coming to an end. In particular, the pattern consists of two downtrend waves A and C with a smaller uptrend wave B in between.
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According to the price chart of the XRP/USD pair below on the 4-hour candlestick time frame, the first downward wave A started after XRP price rejected the resistance near $2.9 on December 3, leading to the bottom. It was $2.16 on December 5, a drop of 25% in two days. From there, it continues in a small uptrend wave B, which shows that the bulls are still in action. Wave B peaked at $2.65 on December 9, representing another 22% gain in four days.
Since reaching this lower high, XRP price has embarked on another corrective path over the past 24 hours, giving rise to the concept of corrective wave C that is currently underway. If a similar trend emerges like Wave A, we could see XRP price correct another 25% from $2.65, which would would put the bottom just below $2 before another rally. This is very logical considering that the $2 price level is the psychological threshold for bulls to prevent a break below.
Bullish impulse suggests next move to $2.8 and above
At the time of writing, XRP price is trading at $2.19, down nearly 10% in the past 24 hours. The ongoing wave C is the last wave of the ABC correction pattern and will likely continue the downtrend until resistance at $2 is reached. Technical indicators support this outlook, especially the relative strength index (RSI).
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The RSI fell below overbought territory for the first time since November 10th. This signals that the bullish momentum that drove XRP to recent highs is cooling down, paving the way for the continuation of corrective wave C.
Despite this pullback, market dynamics Recommend rebound A start from the $2 level is very likely. Such a rally could mark the beginning of a new bullish wave and push XRP price towards $2.80 and above. This scenario is consistent with the broader outlook for XRP, which is Investor optimism continues Clarity about regulation The new U.S. presidential administration Taking office in January 2025.
Featured image created using Dall.E, chart from Tradingview.com
