Ripple (XRP) Primed for Historic Breakout? Wave 3 Pattern Signals Potential New All-Time Highs

XRP bulls are eyeing the charts as a classic Elliott Wave formation suggests explosive upside potential. The third wave—typically the most powerful in the sequence—could propel Ripple to levels not seen since its 2018 peak.

Technical Setup Breakdown

Wave 3 patterns often deliver the strongest momentum moves in any asset class. For XRP, this translates to a potential parabolic surge that would make traditional finance returns look like pocket change. The setup emerges after months of consolidation, with key resistance levels now appearing vulnerable.

Market Dynamics at Play

Ripple's recent legal clarity with the SEC removes a major overhang that's suppressed prices for years. Combine regulatory resolution with improving adoption metrics, and you've got fuel for a significant revaluation. Institutional interest quietly builds while retail traders remain distracted by newer shiny objects.

Historical Precedent

Previous Wave 3 movements in XRP have delivered triple-digit percentage gains within compressed timeframes. The current technical structure mirrors those historical setups—only with a much larger base formation. Of course, past performance doesn't guarantee future results, but pattern recognition remains a trader's best friend.

The contrarian case? Wave theory works until it doesn't—and crypto markets have a habit of humbling even the most elegant technical analysis. Still, with traditional finance still trying to figure out blockchain basics, digital assets continue outpacing legacy systems.

Wave 3 Incoming?

According to CasiTrades’ latest update, the current market behavior suggests that the wick was largely driven by over-leveraged traders, rather than the market’s “true intent.”

Following the dip, price action quickly recovered above the macro 0.5 Fibonacci retracement at $2.79, and candle bodies have consistently respected this level since. Observers anticipate a potential minor retest of the $2.79 support before XRP initiates Wave 3 upward momentum.

During this retest, traders will watch for a lower low in candle bodies, ideally paired with a bullish divergence on the 4-hour RSI, which could serve as a strong buy signal.

Should XRP drop below $2.70, the Wave 2 scenario would be invalidated, and the next significant support is expected at the macro 0.618 retracement near $2.6. For now, maintaining $2.8 indicates that the market structure remains intact.

Looking ahead, the bullish scenario is intact, with major resistance targets at $4.00 and $4.40, aligning with the 2.618 and 3.618 Fibonacci extensions of the projected Wave 3. The coming days will be critical, and $2.8 could potentially serve as the crucial level to watch.

If it holds and bullish divergence develops, XRP could see a new all-time high and the subsequent start of a strong Wave 3 impulse.

This setup has emerged amidst ongoing adoption initiatives and strategic developments in the XRP ecosystem.

Market Maturation and ETFs

In a statement to CryptoPotato, Alexis Sirkia, Captain of the Yellow Network, said that XRP’s trajectory is being shaped by the market’s maturation, particularly with the launch of the first US XRP ETFs.

According to Sirkia, these ETFs represent not just new investment avenues, they also indicate growing regulatory acceptance and create a clearer pathway for XRP, an asset long focused on cross-border utility and compliance.

Having observed this ecosystem since its inception, Sirkia sees these advancements as an instrument to XRP’s enduring vision. He also said that “the temporary lull in on-chain activity this week for XRP evidences the broader altcoin slowdown rather than any flaw in the XRPL’s foundational strength.”

He went on to add:

“As institutional adoption via ETFs and RLUSD integration gains traction, we can expect this dip to reverse swiftly, reigniting transaction volumes and propelling XRP back toward its role as a vital bridge between TradFi and DeFi. The true test of any digital asset’s longevity, including XRP, is not just its current market cap, but its capacity to facilitate seamless, scalable, and interconnected liquidity across diverse financial ecosystems.”