A market analyst has released a recent XRP price analysis using the Bitcoin (BTC) chart and price action as the basis for his predictions. The analyst is short-term the outlook for XRP is bearishwith continued market volatility and changing sentiment, which creates challenges. While it highlights potential downside targets, the analyst also applies this Elliott wave theory to determine resistance levels, indicating areas where XRP may decline.
Market analyst Tara has common her plan for XRP based on patterns she observed in the Bitcoin chart. In her post on X, Tara outlined a clear roadmap for traders, warning that the current rebound in the XRP price could be a misleading move and that significant risk of loss stays forward.
The analyst said it was complete five-wave Elliott wave decline on the one-hour XRP chart, noting that the price completed the wave 5 sell-off near the support zone at $1,362, a level evident on the chart as a sturdy horizontal bottom.
XRP price prediction based on Bitcoin chart
From this bottom, XRP continued its upward corrective move, which Tara termed ABC correction. This pattern consists of an raise in Wave A, a decrease in Wave B, and an anticipated push in Wave C, which is expected to push the price higher in the miniature term.
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The analyst explained that like Bitcoin, XRP is currently awaiting a retracement of Wave 2 or Wave 5. She said the move is targeting the 0.618 resistance level at $1.51, which also coincides with the 1:1 measured move. Moreover, she clearly stated that this upward move carries a bearish tag and should not be misinterpreted as a sign of bullish strength returning to the market.
Tara further warned that the move could trap many bulls. She noted that many entrepreneurs can confuse a short-term rally with a real breakoutto be surprised when the next wave starts. The analyst also noted that based on her readings of the Elliott Wave structure, investors should already be thinking about what wave may come next once the rebound ends near the $1.51 resistance zone evident on the chart.
Looking further ahead, Tara pointed to Wave 3 as the next huge move to watch out for. She noticed that Wave 3 was carrying negative goals as low as a double bottom at $1.12. The analyst added that the $0.87 macro support level on the price chart also remains a likely and vital target, representing a much deeper pullback from current price levels.
Update on XRP price action
XRP price is currently trading at $1.37 after failing to break and hold levels above the $1.40 resistance level. According to CMC data, XRP price behavior has been largely bearish over the last two weeks, falling more than 6% in the last seven days and more than 3% in the last 24 hours.
The recent downturn was caused by the lack of sturdy growth catalysts in a highly volatile market continuing geopolitical tensions. XRP’s persistent bearish technical structure and negative sentiment have also significantly impacted price dynamics.
Featured image from Getty Images, chart from Tradingview.com
