XRP recently fell to an important support level on September 26, in line with the broader cryptocurrency market decline. However, technical indicators are showing signs of a strong potential rebound in the near future.
Overview
- Elliott Wave analysis suggests a potential price recovery for XRP in the fourth quarter.
- XRP has formed several bullish chart patterns, including a flag and cup-and-handle, signaling possible gains.
- The demand for XRP is expected to rise, especially following the approval of spot XRP ETFs.
XRP dropped to $2.70, reflecting a 26% decline from its highest point earlier this month. Despite this drop, the technical outlook indicates that a rebound could occur in the coming weeks, driven by positive chart formations and external factors.
XRP Price Elliott Wave Pattern Signals a Potential Rebound
Analyzing the daily chart, XRP appears to be in the second phase of the Elliott Wave pattern. This phase typically retraces between 50% and 61.8% of the initial upward movement. The first phase occurred in June and ended by July 18, and now we’re in phase two, which typically leads into the most powerful and longest phase, phase three.
In addition to the Elliott Wave pattern, XRP has formed other bullish chart formations. The second wave of the Elliott pattern aligns with a double-bottom pattern at $2.70, with the neckline at $3.20. XRP has also created a descending channel, forming a bullish flag, which is a common continuation pattern in technical analysis.
The falling channel is part of the larger cup-and-handle pattern, adding more strength to the case for a potential recovery. The combination of the Elliott Wave, double-bottom, bullish flag, and cup-and-handle patterns suggests that XRP could eventually see a rebound, possibly reaching its year-to-date high of $3.65, followed by the psychological resistance level at $5.00.
Catalysts Driving XRP Price Growth
Several factors are likely to drive XRP price higher in the upcoming weeks. The most significant of these is the growing expectation that the U.S. Securities and Exchange Commission (SEC) will approve spot XRP ETFs by October. This approval could lead to increased demand for XRP, as evidenced by the recent success of the XRPR fund, which attracted nearly $100 million in assets in just one week.
Additionally, other XRP futures ETFs launched by Teucrium and ProShares have seen substantial inflows in recent months, which is expected to further boost XRP's price.
XRP Ledger has also gained recognition as a leader in the real-world asset (RWA) tokenization space, with over $350 million in assets. Developers plan to increase this market share through an upcoming upgrade. Ripple Labs continues to strengthen its position in the payments industry, partnering with banks and companies to streamline cross-border payments. Ripple’s stablecoin, RLUSD, which currently holds $741 million in assets, is expected to play a key role in these initiatives.
