TLDR:
- XRP completed a third wave peak at $3.10 before entering a textbook fourth-wave correction.
- Key support between $2.90–$2.93 aligns with multiple Fibonacci retracement zones.
- RSI reset from 80 to 53.7, clearing room for a potential bullish continuation.
- Traders watch $3.10–$3.22 as confirmation levels for the fifth wave breakout.
XRP just wrapped up a powerful third wave, and now traders are bracing for the next move. Price momentum cooled, but the setup for another leg higher is taking shape.
Market watchers are keeping a close eye on key support zones that could decide the next breakout. RSI has also eased, creating room for a fresh run. Many now expect a bullish medium-term trend if XRP clears the next major barrier.
Veteran trader Matthew Dixon shared that XRP’s third wave extended to the 2.618 Fibonacci level around $3.10. He noted that this move fits the Elliott Wave playbook.
A short-term correction is playing out, and a fifth wave could soon follow. Dixon also pointed out that bearish divergence on RSI was expected and is now helping reset the market.
Further upward movement expected soon for #XRP as we appear to have completed a well extended 3rd wave @ 2.618 FIB extension of wave 1.
Alternatively we may have a final leg down to complete the countertrend correction before higher.
The Bearish divergence shown was to be… pic.twitter.com/1UTjyxj2el— Matthew Dixon – Veteran Financial Trader (@mdtrade) August 5, 2025
Price action shows XRP holding above $2.90–$2.93, which matches multiple Fibonacci retracement zones. This area has become a critical support cluster where buyers continue to step in.
XRP Technical Structure
The pullback now looks like a textbook fourth wave. If XRP holds support, the next target sits between $3.10 and $3.22. Breaking that range would confirm a fifth wave advance.
Traders are also watching the $2.81 zone, which links back to the second wave’s low. Any dip into this level could attract heavy buying. XRP’s technical map is lining up for a continuation move if the correction remains shallow.
RSI backed off from overbought levels, dropping from 80 to around 53.7. That move puts the indicator in a neutral position. It’s the kind of reset that often comes before another rally.
Dixon highlighted that the current RSI shift isn’t bearish. Instead, it clears the path for price strength to return. This view has gained traction among traders waiting for a cleaner entry point.
Price Outlook
XRP’s chart suggests a pause, not a reversal. Key support zones remain strong, and Fibonacci levels continue to guide the market.
If price breaks $3.10 with volume, a run toward $3.22 or higher could follow. For now, the market is watching the $2.90 floor. A bounce from that level might trigger the next wave of momentum.
