TLDR:

XRP price retraced over 61.8% of Wave 1, aligning with Elliott Wave theory and hinting at a possible Wave 3 setup.
The $2.87 level acts as a crucial support zone, marking the 61.8% Fibonacci retracement of Wave 1.
RSI near 44 suggests XRP is neutral, with divergence hinting at a fading bearish phase before reversal.
Analysts forecast a potential rally above $3.10 if XRP maintains support and momentum builds toward Wave 3.

XRP has fallen back to a critical level, sparking debate among traders about what comes next. The cryptocurrency, now hovering near $2.86, has retraced over 61% from its previous advance. Market watchers see this as a typical correction phase before a potential new rally. 

While some traders are shaken by the decline, analysts point out that the structure still looks technically sound. As large holders reposition, sentiment appears mixed but far from bearish.

According to veteran trader Matthew Dixon (@mdtrade), XRP’s retracement is consistent with a healthy Wave 2 correction in Elliott Wave theory. He explained that such corrections often exceed 61.8% of Wave 1, clearing weaker positions before Wave 3 begins. 

In his words, these shakeouts “scare retail traders out of position before whales pile in.” His analysis reflects broader market behavior, where deep retracements often precede impulsive upward moves.

XRP price on CoinGecko

Per CoinGecko, XRP is trading at $2.86, marking a 3.84% decline in the last 24 hours but still up 0.74% over the past week. The coin’s 24-hour trading volume stands above $7 billion, showing steady interest even during correction phases. 

The key levels remain clear: $2.87 serves as a strong near-term support, while $3.10 acts as immediate resistance.

XRP Price Action Nears Key Support Level

Chart data reviewed alongside Dixon’s tweet shows XRP/USD testing the lower boundary of recent price action. 

After peaking near $3.10, XRP pulled back to test Fibonacci support at $2.87, aligning with a 61.8% retracement from the prior move. Traders often watch this level closely since it tends to act as a springboard during corrective phases. If the price holds here, Wave 3 could initiate with higher momentum.

Further downside remains possible if XRP slips below $2.82, where the 76.4% Fibonacci level lies. The $2.78 region is viewed as the final defense for bulls. Analysts say these zones often attract larger players who accumulate ahead of expected bullish reversals. 

A break above $3.10, however, could confirm renewed buying strength and open room toward $3.20 and beyond.

The RSI indicator, currently near 44, points to neutral momentum. It suggests neither overbought nor oversold conditions, giving XRP room to move either direction. 

Yet, divergence between falling prices and rising RSI hints that bearish strength may be fading. If RSI climbs above 50, traders may interpret it as an early signal of a new upward leg forming.

Long-Term Outlook Suggests Accumulation Phase

Another analyst known as Dr. Cat (@DoctorCatX) outlined a broader timeline for potential XRP strength. Based on higher timeframe charts, he expects the next “monster leg” in XRP to begin between January and March 2026. 

He added that while a smaller window between late December and early January exists, it lacks strong confluence across larger timeframes. His view aligns with the idea that XRP may consolidate through the coming months before resuming an extended uptrend.

For now, traders are watching whether the 61.8% Fibonacci zone holds. The structure supports Dixon’s view that XRP remains technically poised for a rally once the correction completes. If large holders continue to accumulate, XRP could recover its footing and challenge higher resistance zones soon. 

For investors, the next few weeks may prove decisive as the market decides whether Wave 3 is ready to begin.

The post XRP Price Tests $2.87 Support, Analysts Predict Rally Toward $3.10 appeared first on Blockonomi.

---

Filed under: Bitcoin - @ October 8, 2025 8:27 am