The XRP price has spent weeks grinding sideways, and traders are unsure whether the correction is over or just getting started. One analyst, TARA, has laid out a clear Elliott Wave blueprint that indicates the market is about to deliver one more shakeout before the real rally begins.
TARA shared a detailed chart showing XRP’s current position within a larger wave structure. The takeaway is simple but uncomfortable for bulls: a drop toward $0.87 is still on the table, and that could be the final trap before a powerful move higher.
XRP Chart Analysis: The Wave 2 Trap: Why $1.51 Is Not the Bottom
TARA’s chart follows Elliott Wave theory, which tracks market cycles in five-wave impulse patterns followed by three-wave corrections. Based on her analysis, XRP completed a Wave 1 rally and is now inside a Wave 2 correction. These corrections are notorious for faking out traders as they often retrace deeply and can feel like a new downtrend.
Right now, XRP is showing strength off the recent lows, and TARA identifies the first upside target at $1.51, which aligns with the 0.618 Fibonacci resistance level. That move would look bullish on the surface and could trap bulls who believe the correction is over.
Source: X/@PrecisionTrade3
But here’s the catch. Wave 2 corrections often have a final, painful leg down after the initial bounce. TARA warns that this bounce could be a bearish retrace, meaning it sets up the next leg lower. If that scenario plays out, XRP would then enter Wave 3, which in her model targets a double bottom near $1.12 and could even extend all the way to macro support at $0.87.
She notes that she will adjust Fibonacci levels as the structure develops, but for now, the blueprint is clear: the move up to $1.51 may not be the end of the correction.
The deeper support zone at $0.87 is not random. TARA’s chart shows that level as a macro support area from previous cycles. If XRP revisits that zone and holds, it would complete a textbook Wave 2 correction and set the stage for Wave 3; typically the longest and most powerful wave in an Elliott Wave sequence.
She draws a parallel to Bitcoin, where similar wave structures have played out before major rallies. In her view, what looks like a breakdown could actually be the final shakeout that clears out weak hands and provides the foundation for the next sustained uptrend.
For traders watching her analysis, the plan is this: watch the bounce toward $1.51. If that fails and the XRP price rolls over, the next levels to buy are $1.12 and then $0.87. Those who understand the wave structure can use the expected drop not as a reason to panic, but as a potential accumulation zone before Wave 3 takes over.
Read also: The One Thing That Sets XRP Apart From Every Other Crypto (Most Investors Have No Idea)
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