XRP's Wave 4 Correction Completed: A Strategic Entry Point for Wave 5

The XRP price action over the past month has provided compelling evidence that the cryptocurrency has completed its Wave 4 correction, setting the stage for a potential Wave 5 rally. This conclusion is rooted in a synthesis of Elliott Wave analysis, Fibonacci retracement levels, and key support/resistance dynamics observed in recent market behavior. For long-term investors, this represents a critical juncture to evaluate strategic entry points while managing risk in alignment with the broader technical narrative.

Confirming Wave 4 Completion: A Confluence of Technical Signals

Elliott Wave theory posits that markets move in five-wave impulsive structures followed by three-wave corrective patterns. In XRP's case, the completion of Wave 4 appears to have occurred near the $1.88 level, a price point historically associated with deep corrections and Fibonacci extensions. This level aligns with the 161.8% Fibonacci extension of Wave 1, a common termination point for corrective waves in impulsive structures.

Recent price action has reinforced this conclusion. Over the past 48 hours, XRP has defended the $2.17 support zone-a critical area for buyers to hold-while consolidating above the Wave 1 high. This consolidation suggests that the corrective phase has exhausted its downward momentum, with buyers stepping in to absorb supply at key demand areas. Analysts like Dark Defender have noted that the monthly Wave 4 correction ended near $1.88, further validating the likelihood of a bullish reversal.

Technical Triggers for Wave 5: Breakouts and Targets

The transition to Wave 5 hinges on a confirmed breakout above the $2.22 resistance level. A sustained close above this threshold would signal the resumption of the impulsive trend, with potential price targets extending to $5.85-a level corresponding to the 261.8% Fibonacci extension of the initial Wave 1 move according to analysis. This projection is supported by multiple analysts, including XForce, who highlight a bullish Wave Count scenario where XRP could surge to $5 in Wave 3 and eventually reach $25 in Wave 5 after a brief Wave 4 correction.

The significance of $2.22 cannot be overstated. It acts as a psychological and technical threshold that, if breached, would invalidate the corrective structure and confirm the resumption of the primary uptrend. For position traders, this level serves as both a trigger for entry and a benchmark for risk management. Stop-loss placements below the Wave 1 high (currently near $1.88) are advised to mitigate downside exposure in case of a failed breakout.

Long-Term Positioning: Balancing Momentum and Risk

While the technical case for Wave 5 is compelling, long-term positioning requires a nuanced approach. The completion of Wave 4 and the potential for Wave 5 must be contextualized within the broader Elliott Wave framework. For instance, some analysts have identified a triple three corrective structure in XRP's recent decline, suggesting that the market may have already resolved complex corrections in wave (II) before entering a new impulse wave. This implies that the current Wave 5 could be part of a larger multi-year trend, offering substantial upside for patient investors.

However, volatility remains a key risk. The XRP market is still influenced by macroeconomic factors, regulatory developments, and liquidity dynamics. Investors should treat the $2.22 breakout as a conditional trigger rather than a guaranteed inflection point. Diversification across entry points-such as incremental purchases near $2.17 or $2.22-can help mitigate timing risks while capitalizing on the potential for a multi-wave rally.

Conclusion: A Strategic Inflection Point

XRP's recent price action and Elliott Wave structure present a rare alignment of technical signals that warrant serious consideration for long-term investors. The completion of Wave 4 near $1.88, coupled with the defense of $2.17 and the looming $2.22 breakout level, creates a high-probability setup for Wave 5. While the path to $5.85 and beyond is not without risks, the confluence of Fibonacci extensions, impulsive wave patterns, and institutional buying interest suggests that XRP is at a strategic inflection point. For those willing to navigate the volatility, this could mark the beginning of a defining bull market phase.