- XRP declined to fulfill the fifth leg of a bearish Elliot Wave on the hourly chart.
- Yesterday’s decline pushed XRP into a potential buying area.
- XRP is building momentum after the court finalized the Ripple vs SEC case.
XRP dipped yesterday, briefly aligning with a prediction by Cheeky Crypto on YouTube, before reversing course and continuing its upward climb. The seventh-ranked crypto fell to $0.57900 before closing at $0.58693, based on TradingView data.
The analyst forecasted the pullback in a podcast, pointing to an Elliot Wave on the XRP one-hour chart that had yet to complete its fifth and final leg. XRP’s decline on Monday slightly exceeded the analyst’s short target. However, he noted the altcoin would enter a bullish phase by crossing above $0.59900, the bottom of the first leg of the five-phase Elliot Wave.
It is worth noting that XRP completed the reversed Head-and-Shoulders pattern last weekend before initiating the five-phase Elliot Wave pattern identified by the Cheeky Crypto analyst. The altcoin’s price rose to $0.63100 last Saturday, retesting the key resistance it formed in late July.
The $0.63100 region has emerged as a crucial area for XRP. TradingView’s data reflect the establishment of multiple resistance points across that region, considering the numerous times it has rejected an XRP rally. Despite this, many crypto analysts believe the region signals building momentum that could fuel an XRP surge.
Observing the higher weekly timeframe reveals a chart formation suggesting a break above the $0.63100 region could trigger an XRP rally toward the next notable resistance at $0.65800. A high-momentum rally could quickly propel the price past this region, aiming for a more significant resistance at $0.75000.
Bullish sentiment returned to XRP after the court finalized its ruling in the case between Ripple and the SEC on August 7, ordering Ripple to pay a $125 million penalty for violating U.S. securities laws. XRP supporters see the ruling as a relative victory, considering the SEC had requested a $2 billion fine against XRP.
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