XRP Fibonacci Retracement Levels – Wave (4) Support Zone Analysis

Ripple (XRP) is currently navigating a critical juncture in its technical structure, with price action consolidating within Fibonacci retracement levels that define the fourth wave of a macro impulse cycle initiated from the 2022 lows. The current pullback is maintaining its position between the 0.5 (Halfway Between) and 0.618 (Golden Zone) Fibonacci retracement levels – a textbook support area where fourth-wave corrections typically find footing. This zone represents a crucial confluence where Fibonacci ratios converge with wave theory expectations.

Understanding Wave (4) Structure Within Fibonacci Retracement Zones

The Elliott Wave count reveals a developing five-wave impulse structure at the macro level. The pullback currently unfolding shows corrective, overlapping price action that aligns with standard fourth-wave behaviour. The significance here lies in how Fibonacci retracement levels are functioning as dynamic support barriers. The 0.618 ratio, in particular, acts as the golden zone that historically contains corrective waves of this magnitude. As long as price maintains support above these Fibonacci retracement levels, the bullish thesis remains intact, positioning the market for a fifth-wave rally expansion.

Critical Support Levels Defined by Fibonacci Ratios

The technical framework leverages multiple Fibonacci retracement levels to establish zones of interest. The 0.5 level provides the initial support tier, while the 0.618 retracement serves as the deeper, more robust support barrier. These aren’t arbitrary numbers – they represent mathematical relationships that have proven effective in anticipating where corrections find support across multiple timeframes and market cycles. Should price hold above these Fibonacci retracement levels, the setup remains constructive for continuation. If violated decisively, the analysis suggests Wave (4) may extend into a deeper corrective phase, with downside exposure reaching the 0.35–0.30 Fibonacci retracement zone.

Bullish Targets vs Downside Risk Scenarios

On the upside, if the current support derived from Fibonacci retracement levels holds firm, Wave (5) is projected to unfold with initial targets aligned to the 0.236 macro retracement, pricing XRP around $4.50. Extended momentum could propel price toward $6.00, representing meaningful upside from the current level of $1.35 (down 1.95% over 24 hours). Conversely, a breakdown through the Fibonacci retracement levels outlined in the support zone transforms the technical picture entirely. This scenario would invalidate the primary bullish count and open the door for a more pronounced corrective leg, with price potentially declining toward the 0.35–0.30 Fibonacci retracement zone – a make-or-break decision point for the macro count.

The current setup at these Fibonacci retracement levels represents a clear inflection point: maintain support above the 0.618 ratio and Wave (5) extension becomes the base case; lose the Fibonacci retracement support zone, and a deeper correction unfolds with material downside implications.