XRP Price Warning: Drop to $0.87 Before Ripping Higher – Here’s the Analyst’s Plan

The XRP price has spent weeks grinding sideways, and traders are unsure whether the correction is over or just getting started. One analyst, TARA, has laid out a clear Elliott Wave blueprint that indicates the market is about to deliver one more shakeout before the real rally begins.

TARA shared a detailed chart showing XRP’s current position within a larger wave structure. The takeaway is simple but uncomfortable for bulls: a drop toward $0.87 is still on the table, and that could be the final trap before a powerful move higher.

XRP Chart Analysis: The Wave 2 Trap: Why $1.51 Is Not the Bottom

TARA’s chart follows Elliott Wave theory, which tracks market cycles in five-wave impulse patterns followed by three-wave corrections. Based on her analysis, XRP completed a Wave 1 rally and is now inside a Wave 2 correction. These corrections are notorious for faking out traders as they often retrace deeply and can feel like a new downtrend.

Right now, XRP is showing strength off the recent lows, and TARA identifies the first upside target at $1.51, which aligns with the 0.618 Fibonacci resistance level. That move would look bullish on the surface and could trap bulls who believe the correction is over.

But here’s the catch. Wave 2 corrections often have a final, painful leg down after the initial bounce. TARA warns that this bounce could be a bearish retrace, meaning it sets up the next leg lower. If that scenario plays out, XRP would then enter Wave 3, which in her model targets a double bottom near $1.12 and could even extend all the way to macro support at $0.87.

She notes that she will adjust Fibonacci levels as the structure develops, but for now, the blueprint is clear: the move up to $1.51 may not be the end of the correction.

The deeper support zone at $0.87 is not random. TARA’s chart shows that level as a macro support area from previous cycles. If XRP revisits that zone and holds, it would complete a textbook Wave 2 correction and set the stage for Wave 3; typically the longest and most powerful wave in an Elliott Wave sequence.

She draws a parallel to Bitcoin, where similar wave structures have played out before major rallies. In her view, what looks like a breakdown could actually be the final shakeout that clears out weak hands and provides the foundation for the next sustained uptrend.

For traders watching her analysis, the plan is this: watch the bounce toward $1.51. If that fails and the XRP price rolls over, the next levels to buy are $1.12 and then $0.87. Those who understand the wave structure can use the expected drop not as a reason to panic, but as a potential accumulation zone before Wave 3 takes over.

Read also: The One Thing That Sets XRP Apart From Every Other Crypto (Most Investors Have No Idea)

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The post XRP Price Warning: Drop to $0.87 Before Ripping Higher – Here’s the Analyst’s Plan appeared first on CaptainAltcoin.