Technical analysis of the XRP’s weekly candlestick timeframe chart shows that the cryptocurrency has spent the past several months compressing inside a tightening structure, forming a narrowing support and resistance triangle. This analysis attempts to map out where this pressure leads next, particularly as XRP is now trading around the peak of this triangle, where volatility could return in force.
Since then, the second wave, which is naturally corrective based on the theory, has dragged the price action sideways to create lower highs beneath descending resistance and higher lows above the support.
The chart below shows that this corrective phase is now entering its final stretch, with candles clustering inside the narrowing triangle.
The technical message is straightforward: once the correction exhausts itself, the next phase of the Elliott count would be a Wave Three expansion. This third wave is the strongest and longest of the five waves, and it often receives the largest percentage gains in the entire cycle.
The analysis marks two levels that now define XRP’s breakout conditions. The support band around $2.22 has held firm throughout the entire consolidation, providing the foundation of the structure. The resistance line is at $2.85, and this has capped every rally attempt since the summer.
The Fibonacci extension levels on the chart indicate the next significant checkpoints after the Wave 3 expansion starts. The first leg of the anticipated impulse, the 261.8% extension, is located close to $5.85. However, the wider Wave 3 target is located at the 361.8% level around $18.22.
