XRP and XLM Coin Elliott Wave Analysis: Corrective Phase Nears the End

XRP chart analysis reveals an Elliott Wave correction originating from the year high of $2.90 and emerging within a descending triangle. The token completed an impulsive wave (labelled 1-5) followed by a corrective structure.

XRP continued its decline over the weekend, but it has almost ended its downtrend, according to analysts.

XLM Coin is moving sideways, but a breakout is possible soon.

Both have formed descending triangles since the high of the year, which signals a corrective phase before the continuation of the bull trend, according to analysts.

FXEmpire analysts analyse these two coins.

XRP Coin Elliot Wave analysis

XRP’s 4-hour chart reveals an Elliott Wave correction from the year’s high at $2.90, emerging within a descending triangle. The token completed an impulsive wave (1-5) followed by a corrective structure. Currently, the token is trading within the descending triangle, approaching key support levels that will determine the next price action. The ongoing corrective phase is forming a WXY pattern, with wave Y projected near the 0.618 Fibonacci retracement at $1.90. The Relative Strength Index (RSI) is declining, signalling a weakening momentum. However, if the price respects the lower boundary of the triangle and the critical Fibonacci levels, a bullish bias is possible.

Resistance levels are at $2.20 (0.5 Fib) and $2.28 (0.382 Fib). Support is at $1.90 (0.618 Fib).

The descending triangle could trigger the next significant downside move. XRP’s hourly chart highlights the continuation of the corrective phase, showing a double bottom at a critical support level. A strong rebound is possible if the price holds above the green support zone around $1.90. Conversely, a break below this critical level would intensify selling pressure, pushing XRP towards $1.64 (0.786 Fib).

The RSI is suppressed, indicating limited bullish momentum unless there is a significant market catalyst. Scenarios suggest that a breakout from the descending triangle would push XRP to $2.20 and $2.28. Alternatively, if it fails to maintain the support of $1.90, it could pull it to $1.64 or lower.

XLM Coin Elliot Wave analysis

XLM Coin’s 4-hour chart shows a descending wedge formation following an Elliott Wave impulsive structure that peaked in wave (v) at $0.64 on 23 November. The correction is forming an ABCDE structure, signalling a consolidation phase within the wedge. On 20 December, the price fell as low as $0.31, which would signal the completion of the corrective structure. However, on the next rebound, the price remained below the descending resistance, leaving room for further corrective development. The price is approaching the lower boundary of the wedge, which coincides with broader support levels around $0.33, presenting a critical decision point.

The Relative Strength Index (RSI) is maintaining a neutral stance, reflecting the waning momentum. If XLM Coin breaks above the wedge resistance, bullish targets include $0.40 and $0.45. However, failure to hold the support around $0.33 would result in a continued decline towards $0.30 and even $0.25. The correction is likely to have ended on 20 December. In other words, the consolidation since then is the first sign of the upcoming rise. However, the price failed to make a breakout, leaving room for another decline before a decisive move.

Scenarios suggest that a breakout in either direction is imminent due to the narrowing range of the wedge. A bullish breakout would trigger a test of key Fibonacci retracement levels. However, a bearish breakout would push previous support levels. Volume analysis points to low participation, suggesting that a strong breakout will need more buying or selling pressure.

The opinions and forecasts in the article are those of analysts and are not investment advice. As Kriptokoin.com, we strongly recommend that you do your own research before investing.

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