XRP: A Strategic Elliott Wave Buy Opportunity as Wave 2 Corrective Phase Concludes

The cryptocurrency market has long been a theater of volatility, but for those attuned to its rhythms, patterns emerge that offer disciplined opportunities. XRP, the digital asset underpinned by the XRP Ledger, now presents such an opportunity. Technical analysts have identified the conclusion of a critical corrective phase—Elliott Wave 2—positioning XRP for a potential Wave 3 rally. This analysis, rooted in both technical structure and evolving market sentiment, suggests a compelling case for strategic entry.

The Technical Case: Wave 2 Ends, Wave 3 Begins

Elliott Wave theory, a time-tested framework for analyzing financial markets, posits that trends unfold in five-wave impulsive sequences followed by three-wave corrective phases. For XRP, the recent decline to $2.72 in early September 2025 marks the likely end of Wave 2, a corrective pullback within a broader bullish cycle [1]. This level, supported by declining volume and neutral RSI momentum, indicates a cooling off rather than a deep bearish trend [1].

If this support holds, the asset is poised to enter Wave 3—a historically powerful and extended phase. Analysts from CryptoInsightUK highlight key intermediate targets at $3.50, $5.50, and $7.00, with a long-term ceiling of $9.69 [3]. Such a trajectory aligns with the typical characteristics of Wave 3: strong momentum, broad participation, and a tendency to overshoot initial projections.

On-chain data further reinforces this narrative. Whale accumulation of 340 million XRP in the past two weeks, with total holdings now exceeding 7.84 billion XRP, suggests institutional confidence [4]. This accumulation contrasts with recent institutional liquidations, creating a divergence that often precedes trend resumption [4].

Market Sentiment: Divergence and Divergence

Market sentiment, while often fickle, provides additional clues. The accumulation by large holders (whales) indicates a “fortress” strategy, where long-term investors build positions during short-term weakness [4]. This behavior diverges from the panic selling typically seen in deeper corrections, suggesting a floor is forming.

However, caution is warranted. Institutional liquidations and large outflows observed on Korean exchanges raise questions about potential market manipulation or retail selling pressure [1][2]. These dynamics highlight the importance of monitoring institutional activity, particularly as regulatory scrutiny intensifies.

Risks and Uncertainties

No investment thesis is without risks. A breakdown below the $1.99–$1.94 range would invalidate the current wave structure, necessitating a reassessment of the bullish case [1]. Additionally, regulatory delays regarding XRP ETF approvals and broader macroeconomic conditions—such as Federal Reserve policy—remain critical uncertainties [4].

Short-term traders should closely watch $2.70 and $2.90 as key support and resistance levels [1]. A failure to hold these could trigger a retest of Wave 2 lows, extending the corrective phase.

Strategic Implications

For investors, the alignment of technical and sentiment indicators creates a rare convergence. The conclusion of Wave 2 and the potential for a robust Wave 3 rally present a strategic entry point, particularly for those with a medium-term horizon. However, this opportunity is contingent on maintaining control of key levels and navigating regulatory headwinds.

Conclusion

XRP’s technical structure and on-chain activity paint a picture of resilience. While risks persist, the market’s current alignment—between Elliott Wave dynamics and whale accumulation—suggests a high-probability setup for a significant upward move. For disciplined investors, this represents a compelling case to consider a strategic position, provided they remain vigilant to evolving risks.

Source:
[1] XRP Elliott Wave Structure Eyes $9.69 Top as Corrective Wave 2 Concludes, [https://thecryptobasic.com/2025/09/02/xrp-elliott-wave-structure-eyes-9-69-top-as-corrective-wave-2-concludes/]
[2] XRP News Today: XRP's $9.69 Target Hinges on Wave 3's ..., [https://www.ainvest.com/news/xrp-news-today-xrp-9-69-target-hinges-wave-3-impulse-institutional-buy-2509/]
[3] XRP Price Prediction: Elliott Wave Model Suggests $9.69 ..., [https://thetradable.com/crypto/xrp-price-prediction-elliott-wave-model-suggests-969-target-as-wave-2-ends-ig--m]
[4] XRP News Today: Whales Build Fortress as XRP Faces ..., [https://www.ainvest.com/news/xrp-news-today-whales-build-fortress-xrp-faces-regulatory-crossroads-2509/]