XRP's price has been consolidating after its previous rally, but crypto analysts warn the digital asset could face a significant correction soon. Technical analysis suggests XRP may experience a flash crash in April, potentially driving prices to new lows before rebounding.
MetaShackle, a cryptocurrency analyst on TradingView, has published Elliott Wave-based analysis of XRP's price movements that forecasts turbulent price action ahead. The analysis incorporates technical factors including Fair Value Gaps, liquidity zones and trendlines to map the cryptocurrency's potential trajectory.
"XRP is currently in Wave 4 of a larger cycle," MetaShackle stated in the published analysis. Waves 1 through 3 represented strong upward momentum before Wave 4 triggered a major correction in price.
According to the analysis, XRP may be heading toward a false breakout in coming weeks that could trap optimistic traders before a sudden flash crash. This correction could see prices fall to between $1.4 and $1.6, representing a potential 43% decline from current levels. The anticipated downturn would likely liquidate overleveraged positions and shake out investors with weaker conviction.
If Wave 4 completes its formation, the cryptocurrency could push higher into Wave 5, potentially reaching between $2.80 and $3.00 where a Fair Value Gap exists. MetaShackle believes this move would create a false breakout by taking out liquidity above recent highs before the April correction.
The flash crash is projected as Wave 6 in the pattern, with prices expected to hold above the lower support trendline. Despite the severity of the potential drop, the analyst considers this a necessary technical move before a genuine breakout can occur.
More optimistically, MetaShackle forecasts that Wave 7 will begin in May 2025, potentially initiating a new price discovery phase for XRP. This breakout could propel the cryptocurrency beyond its previous all-time high of $3.84 established in 2018.
XRP currently trades at $2.44 after gaining 4.56% over the past week. Despite experiencing a sharp decline from its $3.00 high earlier this year, the cryptocurrency has maintained relative stability compared to more volatile alternatives.
Not all analysts share the bearish near-term outlook. A market expert identified as "Steph Is Crypto" on X (formerly Twitter) forecasts that XRP could surge to $3.40 soon, which would represent a 39.34% increase from current market prices. This contradictory view highlights the uncertainty that continues to characterize cryptocurrency markets despite their increasing mainstream adoption.
The conflicting predictions come amid broader regulatory scrutiny of the cryptocurrency sector, though specific legal developments concerning Ripple and XRP were not addressed in the technical analysis.
