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$XRP has been facing a stretch of weakness in recent days, struggling to hold above the $3.00 mark and instead pushing downwards below it. Price action on the 4-hour chart shows the token moving within a downward structure, and it broke below $2.9 in the past 24 hours.
It is within this context that crypto analyst DustyBC Crypto shared a bearish outlook, pointing out that $XRP has not yet reached its first downside target and warning that more decline could still unfold before it enters any new uptrend.
$XRP Wave 4 Correction In Progress
According to crypto analyst DustyBC Crypto, $XRP’s recent moves are part of a broader corrective structure. In his latest update shared on the social media platform X, he explained that the $XRP/USD pair has yet to reach its first bearish target, which he identifies as part of a larger wave 4 correction.
The analysis is based on the Elliott Wave structure, which is characterized by three bullish and two corrective impulse waves. Notably, the analyst’s Elliott Wave count shows that $XRP has been playing out a corrective Wave 4 move since it peaked at a new all-time high price of $3.65 on July 18, a move that ended the Wave 3 impulse.
Based on the Elliott Wave theory, Wave 4 is a brief correction move after Wave 3 just before another bullish Wave 5. Interestingly, the $XRP price has declined by about 22.5% since it reached this all-time high.
DustyBC’s analysis has been following this downtrend move in a series of technical analyses that goes as far back as mid-August. According to DustyBC, $XRP’s price is expected to continue dropping before eventually setting up for a bullish wave 5 recovery. The chart shared by the analyst indicates that $XRP could continue to decline until it reaches the $2.65 to $2.60 price range before Wave 4 eventually bottoms out.
Long-Term Perspective Is Positive
Despite the bearish short-term forecast, DustyBC noted that the overall outlook for $XRP is bullish. He admonished traders not to rush into positions if they are not comfortable with short trades, and long-term holders should instead view the current weakness as discount territory to accumulate more $XRP.
$XRP has struggled to maintain upward momentum in the past few days, and this lends voice to the notion of a corrective Wave 4 movement. As shown in the 4-hour chart above, $XRP was rejected at the $3 price level some days ago, and this has led to a further decline in the past 48 hours.
Nonetheless, the long-term outlook is bullish, and a Wave 5 bounce could lead to a push to new all-time highs above $3.65. The decisive test now lies in whether $XRP can hold support around $2.6 if it reaches there before positioning itself for the next wave higher.
At the time of writing, $XRP is trading at $2.80, down by 1.4% in the past 24 hours.
Featured image from Unsplash, chart from TradingView