3-Wave Correction Puts XRP Price on a Bearish Rate – Another Major Crash Is Coming

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XRP price action in recent days took a gentler turn, with the token currently trading below $2 after failed attempts to regain value. This move changed the short-term dynamics back to the sellers’ advantage, especially as price action closes below short-term energetic support on higher time frames.

AND technical analysis provided by CoinsKid on X is looking at a broader corrective structure developing on the 5-day chart that could put XRP on a clearer bearish path if vital price levels are not regained.

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3-Wave Correction: Structure and Meaning

Technical analysis of XRP price action since mid-2025 shows an fascinating corrective sequence that can be described in terms of waves. According to CoinsKid, what initially appeared to be a correction towards a cluster of moving averages on the 5-day chart failed to hold after encountering resistance with a clear sell signal, as shown in the chart image below.

According to CoinsKid’s interpretation of the 5-day candlestick chart, XRP price action appears to be following three-wave corrective movement. The significance of this interpretation is that the recent rebound to $2.4 was not a true return to upward control, but a pullback within a broader downward corrective pattern that requires even more moves to play out.

An vital point of analysis is the loss of a custom indicator called the CoinsKid band over a 5-day time horizon. This moving average band has previously served as a guide to trend strength through most of 2025, with sustained trading above it indicating bullish control. However, XRP has closed below this band multiple times since Flash crashed in October 2025and the sellers have since retained control of the broader structure.

XRP price chart. Source: @Coins_Kid on X

The multi-year trend line as a negative magnet

The bearish scenario outlined on the chart places XRP’s next major area of ​​concern around its rising multi-year support trendline, which is currently converging on the $1.30 to $1.40 range. This rising white trendline, evident on the 5-day chart and extending into 2020, coincides with zones where XRP has seen robust demand following pullbacks. The highlighted green zone on the chart is focused on the $1.30 to $1.40 range.

At the time of writing, XRP is trading at $1.96, down 4.7% in the last 24 hours. CoinsKid’s forecast is that if the current corrective move continues, the XRP price may oscillate down from the descending resistance line and move towards a support area in the coming months. This would be the latest move in an ABC wave correction that began after XRP hit an all-time high of $3.65 in July 2025.

The analysis shows that only sustained movement back above A 5-day band would invalidate this bearish path and reduce the likelihood of price returning to the lower support region.

XRP price chart from Tradingview.com
Bears lower the price | Source: XRPUSDT on Tradingview.com

Featured image created with Dall.E, chart from Tradingview.com

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