XRP Defends $2.04 Support as Elliott Wave Structure Points to $2.41–$2.46

XRP is holding firm above the $2.04 level after a sharp rally, with technical indicators suggesting the move remains part of a broader bullish Elliott Wave structure.
Price action on the four-hour chart shows the token respecting the 0.5 Fibonacci retracement, a level often associated with trend continuation rather than reversal.

The consolidation follows an extended impulsive advance and appears corrective in nature, not a breakdown.
As long as XRP remains above the $1.95–$2.00 zone, the bullish wave count remains valid, keeping the door open for a potential Wave 5 advance toward the $2.41–$2.46 area.

Price Action and Wave Structure

The recent advance is best described as an extended Wave 3, followed by a controlled Wave 4 correction. This type of pause is typical in strong uptrends. Importantly, XRP has not broken below its key structural support, suggesting the rally is cooling off rather than failing.

• Wave 4 correction is unfolding above major support
• Price remains within a bullish Elliott Wave structure
• Consolidation follows a powerful impulsive move

Fibonacci Support and Indicators

The 0.5 Fibonacci retracement level at $2.04 is acting as a strong technical floor. This level aligns closely with the moving average on the four-hour chart, reinforcing its importance.

Momentum indicators also support the bullish case:

• RSI has stabilized rather than continued lower
• Selling pressure appears to be fading
• Buyers continue to defend the $2.04 area

As long as XRP holds above approximately $1.95, the bullish structure remains valid.

Why This Setup Matters

Holding a key Fibonacci level after an extended rally is a sign of market strength. XRP’s ability to consolidate without breaking structure suggests sustained buying interest and healthy market participation.

This setup matters because:

• It confirms trend continuation rather than exhaustion
• It provides a clearly defined invalidation level
• It supports broader positive sentiment across the crypto market

From a technical perspective, XRP is behaving exactly as expected in a strong uptrend.

Bullish Scenario

If the correction completes and momentum resumes, XRP is expected to enter a Wave 5 advance. The projected target zone lies between $2.41 and $2.46, where price could potentially form a short-term double-top.

Key levels to watch:

• $2.11 breakout and hold as support (early confirmation)
• $2.41–$2.46 as the primary upside target

Risk and Invalidation

The bullish scenario is invalidated if XRP breaks decisively below $1.95. Until that happens, pullbacks should be viewed as corrective rather than bearish.

Analyst’s Take

This is a clean technical setup. XRP is respecting the 0.5 Fibonacci level with precision, which strongly suggests continued accumulation. The invalidation level is clearly defined, and the $2.41–$2.46 target range is realistic if momentum re-accelerates.

Sources and Analysis Notes:

• Technical analysis based on Elliott Wave structure and Fibonacci retracements
• Market commentary sourced from a Twitter post by Tara