XRP sideways consolidation alert! $2.17 is the critical threshold before wave B confirmation

XRP remains range-bound around $2.06, with Elliott Wave theory awaiting Wave B confirmation. The yellow path indicates an upward trend, while the orange path suggests a correction. Resistance is at $2.17-$2.33, support at $1.96. Decreasing volume and neutral RSI reflect hesitation, and Wave B will determine the next 50% trend direction.

Wave B confirmation marks the watershed for XRP’s movement

(Source: Trading View)

XRP continues to fluctuate within a narrow range, lacking momentum. A recent article on More Crypto Online describes the current price action as “deadly dull,” reflecting low volatility and waning trader confidence. The analysis uses Elliott Wave theory to explain this stagnation, suggesting the market is waiting for Wave B to begin. The upcoming movement will clarify whether XRP is preparing for another rally or entering a deeper correction phase.

Elliott Wave theory is a classic technical analysis tool used to forecast market cycles. It posits that markets move in five-wave upward and three-wave corrective patterns. Currently, XRP may be in the prelude to a Wave B within an ABC correction. Wave B is typically a rebound within the correction, and its magnitude and duration will determine the depth of the entire correction. A strong Wave B could signal the correction is ending, with subsequent Wave C limited in decline, possibly only 20-30%.

Conversely, if Wave B is weak, only rebounding near $2.17 with strong resistance, it may indicate market lack of confidence, and Wave C could be more severe, testing support at $1.70 or lower. Historically, the strength of Wave B often depends on fundamental catalysts. If XRP receives significant positive news during this period, such as large ETF inflows or major commercial breakthroughs by Ripple, Wave B could evolve into the start of a new rally.

Currently, Wave B has not yet appeared, so both scenarios remain possible. This uncertainty is at the core of the current market “deadness”: traders are unsure whether to go long or short, and most prefer to wait and see. Therefore, traders remain cautious rather than making definitive directional bets. Only when Wave B truly emerges and shows strength can the market confirm its primary direction.

Yellow path versus orange path: the ultimate showdown

The analysis outlines two competing Elliott Wave scenarios, called the yellow path and the orange path. The yellow path assumes XRP is consolidating and ready to resume upward movement, with the current sideways action building momentum for the next rally. Once Wave B confirms and breaks through resistance at $2.17, a rapid rise to $2.50-$3.00 could occur, representing a 20-45% increase from current levels. If it further breaks $3.00, the yellow path suggests gains of 50% or more.

In contrast, the orange path indicates the market remains in a correction structure, which could limit short-term upside. In this scenario, even if Wave B rebounds, it would be a technical correction, likely stalling at $2.17-$2.20 before Wave C declines. The subsequent Wave C could push the price down to support at $1.96, and if that support fails, further declines to $1.70 or even $1.50 are possible, representing a 27-30% drop from current levels.

The key difference lies in the fundamental market structure judgment. The yellow path believes that the correction from the $3.66 high to the current $2.06 has been a healthy retracement, and the market is ready to resume its upward trend. The orange path suggests the correction is incomplete, requiring a deeper shakeout to clear out weak hands and prepare for a genuine bull market.

The technical significance of resistance at $2.17 and support at $1.96

From a technical perspective, resistance remains a prominent feature on XRP’s chart. Analysis shows resistance between $2.17 and $2.33, aligning with Fibonacci retracement levels commonly used in Elliott Wave analysis. The $2.17 level corresponds approximately to the 38.2% retracement, and $2.33 is near the 50% retracement. These levels often serve as decision zones during corrections, where bulls and bears clash.

On the downside, support around $1.96 remains effective, preventing further declines. This support has repeatedly provided buying interest during dips, indicating many investors see $1.96 as a reasonable entry point. Currently, the price hovers around $2.06, right in the middle of support and resistance, reflecting a market in balance rather than a clear trend.

XRP’s sideways movement, declining volume, and lack of active buying or selling align with this. This phenomenon suggests both retail and short-term traders are waiting for confirmation signals before committing funds. Unlike momentum-driven phases, the current market structure favors patience over aggressive positioning. The shrinking volume is a clear sign of market participants observing rather than acting. Such low-volume consolidation often precedes a breakout, as markets tend not to stay in equilibrium indefinitely.

Looking ahead, traders focus on the emergence of Wave B. A decisive break above $2.17 would reinforce a bullish trend, indicating demand recovery and making the yellow path the dominant scenario. Conversely, failure to hold support at $1.96 would increase the likelihood of a correction, confirming the orange path. Until confirmation signals appear, XRP is likely to continue oscillating within the range.