XRP has experienced a period of weakness recently, struggling to maintain its position above the $3.00 threshold and instead slipping downward. The 4-hour chart indicates the token is moving within a downward trend, having dropped below $2.9 in the last 24 hours.
In this context, crypto analyst DustyBC Crypto has presented a bearish viewpoint, highlighting that XRP has yet to achieve its initial downside target and cautioning that further declines could occur before a potential new uptrend begins.
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XRP Wave 4 Correction In Progress
Per crypto analyst DustyBC Crypto, XRP’s recent movements are part of a larger corrective scheme. In his latest update shared on the platform X, he explained that the XRP/USD pair has not yet reached its primary bearish target, which he views as part of a wave 4 correction.
This analysis draws on the Elliott Wave structure, consisting of three bullish and two corrective impulse waves. The analyst’s Elliott Wave count reveals that XRP has been undergoing a corrective Wave 4 shift since it reached a new all-time high of $3.65 on July 18, a peak that concluded the Wave 3 impulse.
According to the Elliott Wave theory, Wave 4 is a short corrective phase following Wave 3, preceding another bullish Wave 5. Notably, XRP’s price has fallen approximately 22.5% since this all-time high.
DustyBC’s analysis has tracked this downtrend through a series of technical insights dating back to mid-August. According to DustyBC, XRP’s price is predicted to continue decreasing before eventually preparing for a bullish wave 5 recovery. The shared chart indicates that XRP may decline further to the $2.65 to $2.60 range before Wave 4 concludes.
Long-Term Perspective Is Positive
Despite the negative short-term outlook, DustyBC remarked that the overall sentiment for XRP remains positive. He advised traders against hasty decisions if they are uncomfortable with short trades, suggesting long-term holders consider the current downturn as an opportunity to accumulate more XRP.
XRP has had difficulty maintaining upward momentum recently, reinforcing the idea of a corrective Wave 4 phase. As depicted in the above 4-hour chart, XRP was resisted at the $3 price level a few days ago, contributing to a further decline over the past 48 hours.
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Nevertheless, the long-term prognosis is optimistic, and a possible Wave 5 rebound could push prices to new all-time highs above $3.65. The crucial test now lies in whether XRP can sustain support around $2.6 if it reaches that level before gearing up for the next upward wave.
At the moment, XRP is trading at $2.80, down by 1.4% in the last 24 hours.
Featured image from Unsplash, chart from TradingView
