BTCC / BTCC Square / XRP News /
XRP’s Final Consolidation Phase: Elliott Wave Analysis Points to Impending Breakout

XRP’s Final Consolidation Phase: Elliott Wave Analysis Points to Impending Breakout

Author:
XRP News
Published:
2025-10-27 04:06:19
17
2
[TRADE_PLUGIN]XRPUSDT,XRPUSDT[/TRADE_PLUGIN]

XRP is currently navigating a critical juncture in its price trajectory, with technical analysis revealing a compelling Elliott Wave pattern that suggests the cryptocurrency is in its final consolidation phase before a significant directional move. As of October 2025, XRP's recovery momentum has stalled below key resistance levels, creating a pivotal moment for traders and investors alike. The current price action aligns perfectly with what technical analysts identify as a Wave 4 consolidation within the Elliott Wave framework, typically preceding the final Wave 5 movement that often determines the asset's medium-term direction. Market analyst CasiTrades emphasizes that financial markets rarely reverse immediately following substantial declines, instead typically requiring this final exhaustion phase to complete the cycle. This consolidation period represents both a challenge and opportunity for XRP holders, as the cryptocurrency builds energy for its next major price movement. The current resistance levels have proven formidable, but the underlying technical structure suggests this consolidation is necessary groundwork for the next significant price advance. For cryptocurrency enthusiasts and technical traders, this pattern provides valuable insights into potential entry and exit points, while long-term believers in XRP's fundamental value see this consolidation as a healthy pause before the next upward leg. The coming weeks will be crucial in determining whether XRP can break through current resistance and confirm the bullish pattern suggested by the Elliott Wave analysis.

XRP Faces Resistance as Elliott Wave Pattern Suggests Final Consolidation Phase

XRP's rebound has stalled below critical resistance levels, with the cryptocurrency struggling to maintain momentum after a sharp recovery. The price action aligns with an Elliott Wave pattern, indicating a potential Wave 4 consolidation before the next decisive move.

Analyst CasiTrades notes that markets rarely pivot immediately after a major decline, often requiring a final Wave 5 exhaustion phase. The lack of strength to breach the $2.82 resistance suggests selling pressure may not yet be fully exhausted.

The current hesitation mirrors typical Wave 4 behavior, where markets pause to reset sentiment before completing the cycle. Until XRP demonstrates sustained buying pressure, the risk of one final downward wave remains.

XRP Faces Downward Pressure Despite Pending ETF Decision Window

XRP's price trajectory remains bearish as analysts warn of potential declines below $1 by year-end, even with an imminent ETF approval decision between October 18-24, 2025. The token currently trades at $2.35, showing a 6.36% drop within 24 hours alongside a 42.74% surge in trading volume—a classic profit-taking signal.

Technical indicators paint a grim picture: A Falling Three Methods pattern and Hanging Man candlestick formation suggest mounting selling pressure. The MACD flatlines in negative territory while the Money FLOW Index confirms capital outflows. Institutional money appears to be exiting as VWAP and SMA20 hover above current prices.

Market observers note the paradox of rising volumes during price drops—typically a precursor to sharper moves. With the ETF decision failing to buoy sentiment, XRP may test $2 support before potentially breaking below psychological thresholds.

XRP Price Prediction Ahead of SEC Grayscale Spot XRP ETF Approval

The cryptocurrency market anticipates a pivotal moment on October 19, 2025, as speculation mounts over the SEC's potential approval of Grayscale's spot XRP ETF. Such a decision could redefine XRP's trajectory within the digital asset ecosystem.

Market participants are closely monitoring regulatory developments, with the ETF's approval likely to catalyze institutional inflows and bolster liquidity for XRP. The asset's price action reflects this optimism, though volatility remains a near-term certainty.

XRP Price Shows Signs of Life — Here’s Why It Might Be Done Falling

XRP is showing early signals of a potential rebound as on-chain data points to fading selling pressure. The Net Unrealized Profit/Loss (NUPL) metric for short-term holders has plunged to a one-year low of -0.20, mirroring April and June levels that preceded sharp recoveries. Historical patterns suggest such exhaustion often marks local bottoms.

Long-term holders aren't spared either — their NUPL sits at a six-month low of 0.53. When both cohorts show simultaneous fatigue, markets frequently stage comebacks. The Relative Strength Index adds technical confirmation to this narrative, with momentum indicators beginning to favor the bulls.

Ripple Labs’ $1 Billion XRP Treasury Strategy: Will It Lead To A New Rally Toward $10?

Ripple Labs is making bold moves amid XRP's recent 24% price decline. The blockchain payment company plans to raise at least $1 billion for a major XRP purchase, aiming to establish a new digital asset treasury (DAT). This WOULD mark the largest fundraising effort focused specifically on XRP, currently the fifth-largest cryptocurrency with a $138 billion market cap.

The capital will be managed within the new treasury, with Ripple utilizing a special purpose acquisition company (SPAC) to facilitate fundraising. The company will also contribute some of its own XRP holdings to bolster the effort. Despite growing investor skepticism toward DATs—evidenced by sharp declines in shares of major crypto firms like MicroStrategy and Metaplanet—Ripple is pushing forward with its ambitious plans.

In a strategic parallel, Ripple announced the acquisition of treasury management software provider GTreasury for $1 billion. This MOVE strengthens its connections with corporate finance leaders and treasurers, signaling a deeper institutional push.

XRP’s Strategic Pivot in Cloud Mining Era as Regulatory Clarity Emerges

XRP stands at an inflection point as regulatory hurdles dissipate and institutional adoption accelerates. A 2025 U.S. court ruling definitively classifying XRP as non-security has unlocked partnerships with central banks and payment networks, transforming the asset from speculative token to liquidity bridge for global finance.

The resolution of Ripple's protracted SEC litigation removes a critical overhang. Where exchanges once delisted XRP amid regulatory uncertainty, the asset now gains traction as infrastructure for cross-border settlements. This shift coincides with industry-wide migration toward cloud mining solutions, positioning XRP for renewed institutional interest.

Market dynamics reflect this transition. XRP's utility in real-world financial systems now drives valuation more than retail speculation. As payment giants and clearing networks integrate the token, its role as a frictionless settlement LAYER could redefine its market position beyond typical cryptocurrency volatility cycles.

|Square

Get the BTCC app to start your crypto journey

Get started today Scan to join our 100M+ users

All articles reposted on this platform are sourced from public networks and are intended solely for the purpose of disseminating industry information. They do not represent any official stance of BTCC. All intellectual property rights belong to their original authors. If you believe any content infringes upon your rights or is suspected of copyright violation, please contact us at [email protected]. We will address the matter promptly and in accordance with applicable laws.BTCC makes no explicit or implied warranties regarding the accuracy, timeliness, or completeness of the republished information and assumes no direct or indirect liability for any consequences arising from reliance on such content. All materials are provided for industry research reference only and shall not be construed as investment, legal, or business advice. BTCC bears no legal responsibility for any actions taken based on the content provided herein.