XRP Bounce Was a Trap? Analyst Predicts Drop to August Lows

Key Insights

• XRP’s August rally was seen as a B wave, suggesting a possible drop toward $2.55 support.
• Analyst says XRP must reclaim $3.30 soon or risk falling below the key $2.81 level.
• Price action remains trapped between resistance and support, with volatility expected in coming sessions.

XRP price is trading near $3.02 after a sharp drop from $3.15 earlier this week. The token declined by over 4% in the last 24 hours, touching an 11-day low of $2.97 before recovering slightly. The move came as broader market conditions shifted, possibly triggered by geopolitical tensions following comments from former US. President Donald Trump regarding the Russia-Ukraine conflict.

Meanwhile, this volatility has pushed XRP back below the key $3.00 support level, though it is currently trading just above that threshold. With market sentiment cautious and volumes dropping, analysts are closely watching how XRP behaves near these critical levels.

Analyst Sees Corrective Pattern Unfolding

Charting Guy, a market analyst, shared a chart indicating that XRP’s recent move from $2.72 to $3.38 was a corrective B wave rather than the beginning of a new trend. Suggesting it may be part of a larger ABC correction, he explained, “August bounce… was a 3 wave corrective move up unlike others 5 wave impulsive move up.” According to the Elliott Wave count, XRP could revisit its August lows as part of a C wave before any potential recovery.

The analyst’s chart points to support zones between $2.72 and $2.55, aligned with the 0.702 and 0.618 Fibonacci levels. A drop into this area may complete the correction that started in late July and set the stage for a fifth wave higher—if support holds.

 Resistance at $3.30 Becomes a Key Battleground

Ali Martinez, a crypto analyst, noted that XRP must reclaim $3.30 to avoid deeper downside. He stated that the failure to move past this level could expose XRP to a drop toward $2.60 or even $2.00. Martinez previously marked $2.81 as another crucial support level and warned that losing it would damage XRP’s bullish market structure.

“XRP needs to stay above $2.81 to maintain the bull market setup,” Martinez said. 

Price is currently caught between resistance at $3.30 and support near $2.81, with no clear breakout direction yet established.

Short-Term XRP Outlook Depends on Market Stability

XRP remains under pressure amid wider market weakness and global uncertainty. With political meetings between European leaders and Trump scheduled, traders expect more volatility in the coming days. Until XRP breaks above $3.30 or below $2.55, price is likely to trade in a wide range.

The next confirmed move may come only after the market responds to both technical signals and ongoing geopolitical developments.