XRP price dropped to an important support level today, Sept. 26, as the recent cryptocurrency market crash continued.
Summary
- An Elliot Wave analysis points to an eventual XRP price rebound in the fourth quarter.
- The coin has formed other bullish patterns like a flag and cup-and-handle, pointing to more gains.
- There are signs of more demand for XRP after the spot XRP ETF approvals.
Ripple (XRP) token dropped to $2.7, down by 26% from its highest level this month. Still, its technical and points to a strong rebound in the coming weeks.
XRP price Elliot Wave pattern points to a rebound
The daily timeframe chart shows that the XRP price is in the impulse phase of the Elliott Wave pattern.
The first phase started in June and then ended on July 18. It is now in the second phase, which normally retraces between 50% and 61.8% of the first bullish wave.
The second phase is then followed by the third one, which is normally the most bullish and the longest.
XRP has also formed other highly bullish chart patterns. For example, the lower side of the second Elliott Wave coincided with the formation of a double-bottom pattern at $2.70. The neckline of this pattern is at $3.20.
Additionally, the coin has formed a descending channel, which is part of the bullish flag pattern, one of the most popular continuation chart patterns in technical analysis.
The falling channel is part of the formation of the handle section of the cup-and-handle pattern.
Therefore, the combination of the Elliott Wave, double-bottom, bullish flag, and cup-and-handle points to an eventual rebound, potentially to the year-to-date high of $3.65, followed by the psychological level at $5.00
ETF growth to boost the Ripple token
XRP price has some notable catalysts that will help drive it higher in the coming weeks.
The most notable one is the rising odds that the Securities and Exchange Commission will approve the spot XRP ETFs as early as in October when the deadline for most of them comes.
XRP ETFs will likely have strong demand, as the recently launched XRPR fund has demonstrated, with its assets jumping to nearly $100 million in just a week.
The other futures-based XRP ETFs, like those launched by Teucrium and ProShares, have had substantial inflows in the past few months.
XRP Ledger has become a top-ten chain in the real-world asset (RWA) tokenization industry with over $350 million in assets. The developers hope to continue growing this market share by launching a new upgrade later this year.
Ripple Labs also hopes to become a major player in the payments industry, where it is partnering with banks and other companies to help simplify cross-border payments. Its stablecoin, RLUSD, which has accumulated $741 million in assets, will play a major role in this.
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