3-Wave Correction Sets XRP Price On Bearish Course – Another Major Crash Is Coming

Overview

Recent price action for XRP has taken a downturn, resulting in the token trading below $2. This shift has marked a return to bearish momentum as XRP struggles to maintain upward recovery attempts. A technical analysis highlights a broader corrective structure that could lead XRP down a more pronounced bearish path if critical price levels are not regained.

Price Action and Technical Analysis

XRP’s price has recently dropped below $2 following a failure to sustain recovery attempts. This development has shifted near-term momentum back to sellers, as the price action now consistently closes below short-term dynamic support on higher timeframes. According to a technical analysis shared by CoinsKid, the 5-day chart suggests that XRP is forming a three-wave corrective structure.

The analysis indicates that what initially seemed like a corrective advance into a cluster of moving averages on the 5-day chart faltered upon hitting resistance at a marked sell signal. This observation is crucial as it implies that the recent bounce to $2.4 was not indicative of a true shift back to bullish control but rather a retracement within a more extensive downward corrective pattern that is expected to continue.

A significant aspect of this analysis is the loss of a custom indicator known as the CoinsKid ribbon on the 5-day timeframe. This ribbon, composed of moving averages, has historically acted as a guide for trend strength. For much of 2025, sustained trading above this ribbon indicated bullish control. However, since a flash crash occurred in October 2025, XRP has consistently closed below this ribbon, suggesting that sellers have maintained control over the broader market structure.

Multi-Year Trendline as a Bearish Indicator

The bearish scenario presented in the analysis highlights a critical area of interest for XRP around a rising multi-year support trendline, which currently aligns with the $1.30 to $1.40 range. This trendline, visible on the 5-day chart and extending back to 2020, represents zones where XRP has previously found strong demand after pullbacks. The highlighted green zone on the chart centers around this $1.30 to $1.40 range.

At the time of the analysis, XRP is trading at $1.96, reflecting a decrease of 4.7% over the past 24 hours. According to CoinsKid’s projection, if the current corrective move continues, XRP’s price could potentially rotate lower from the descending resistance line and approach this support area over the coming months. This scenario would mark the final move in an ABC wave correction that began after XRP reached a new all-time high.

From author

The current analysis of XRP’s price action provides insight into the dynamics of the cryptocurrency market. The focus on technical indicators, such as the CoinsKid ribbon and multi-year trendlines, highlights the importance of these tools in understanding market sentiment. The bearish outlook suggests that traders and investors should remain vigilant and consider potential support levels when making decisions.

Impact on the crypto market

• XRP’s recent price movement indicates a shift in market sentiment towards bearishness.
• The failure to maintain upward momentum may influence trader confidence in the token.
• Technical indicators suggest that a significant price drop could be on the horizon if critical support levels are not reclaimed.
• The analysis underscores the importance of monitoring key price levels and trends in the cryptocurrency market.
• Broader implications may arise for other cryptocurrencies as traders react to XRP’s performance and market sentiment shifts.