XRP bulls are trying to turn a sharp selloff into something bigger than just a short-term bounce. There’s an interesting setup showing a possible three-part move up from the recent low around $1.05, but it all depends on whether buyers can push the price back through the levels that broke during the crash.
XRP’s Chart Is Trying To Build A Three-Part Impulse
A key technical analysis of XRP’s price focuses on a possible three-leg recovery pattern, starting from the recent low around $1.07. From there, the projected path shows an impulsive move up to the $1.94 area, a pullback to the $1.46 zone, and then a much larger rally into the upper resistance range between $2.39 and $3.11.
Related Reading: XRP Is Oversold On Every Time Frame, And This Could Be The Bullish Signal Everyone Is Waiting For
The chart, shared on X by RWA_Investor, shows a long-term corrective pattern playing out from XRP’s highs above $3 since last year. It’s a classic W-X-Y double zigzag that has taken months to unfold. The first leg, Wave W, completed a full ABC decline, bottoming at a major low labeled (C)/(W) on the chart in early February. A linking wave X then produced a counter-rally that pushed XRP above $1.50 in mid-May, with its own internal (X)-(A)-(B) structure before turning back down. That downturn started the final Y leg, which has now brought XRP back to around $1.12 at the time of writing.
The Impulse Setup Back Above $3
Now that the (C)/(Y) wave is playing out near current lows around $1.12, the setup suggests a shift from correction to a bullish impulse wave.
Related Reading: The XRP Dream Has Changed: Why A Rally To $10 Could Happen Despite Disappointment
The projected move is a three-wave ABC recovery targeting a zone between $2.39 and $3.11. Wave A is expected to push toward $2.12, but this doesn’t mean XRP gets a free pass. There’s a support/resistance trendline around $1.46 that will be the first test, and another possible rejection around $2.12. Wave B would then pull back to roughly $1.46, but this shakeout shouldn’t be mistaken for bearishness. Wave C, the final and strongest leg, is expected to move into a target zone anywhere between $2.70 and $3.10. A break above $3.10 would suggest XRP has already found its macro bottom at $1.05. In that case, the three-part structure could mark the start of a broader trend reversal toward new all-time highs.
If XRP fails to hold above the upper band and loses momentum after the projected rebound, it could eventually revisit the $0.75 to $1 range to complete a corrective macro wave 2. Interestingly, several analysts have pointed to the $0.87 to $0.92 area as a potential bottom target for XRP under a corrective macro wave.
Featured image from Freepik, chart from Tradingview.com
Frequently Asked Questions
Here is a list of FAQs about the threepart impulse pattern and its implications for XRP price direction
BeginnerLevel Questions
Q What is the threepart impulse in simple terms
A Its a pattern on a price chart that looks like three upward waves Traders believe it signals that the price is about to keep going up not down
Q Does the threepart impulse guarantee that XRP price will go up
A No No pattern is 100 guaranteed Its a strong signal but the price can still change direction due to unexpected news market crashes or other factors
Q How do I spot this pattern on a chart
A Look for a clear move up a small pullback down and then another strong move up The pullback should not drop below the start of wave 1
Q Is this the same as the Elliott Wave pattern
A Yes it is The threepart impulse is the first three waves of the classic Elliott Wave theory Its the bullish start of a larger upward trend
Q What does this mean for someone who just bought XRP
A It suggests the current upward move might have more room to run However you should still set a stoploss to protect your investment in case the pattern fails
AdvancedLevel Questions
Q How does the threepart impulse differ from a simple three white soldiers candlestick pattern
A A threepart impulse is a structural pattern that takes days or weeks to form Three white soldiers is a shortterm candlestick pattern that can happen in hours The impulse is a larger more reliable trend indicator
Q What is the Fibonacci retracement level for wave 2 in a valid threepart impulse
A In a valid impulse wave 2 should retrace between 382 and 618 of wave 1 A retracement deeper than 618 often invalidates the pattern or suggests a different structure