XRP/USD – Bullish Reversal in Progress After Wave 5 Completion

📊 XRP/USD – Bullish Reversal in Progress After Wave 5 Completion

Timeframe: 1H
Structure: Elliott Wave + Divergence + Break of Structure
Indicators Used: Awesome Oscillator (AO), Fibonacci Retracement, Market Structure

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🧠 Wave Count & Structure Analysis

We’ve just completed a clean 5-wave Elliott impulsive structure to the downside:
• ✅ Wave 1–5 clearly marked with strong bearish momentum
• ✅ Wave (3) and Wave (5) show bullish divergence on the Awesome Oscillator (AO) – a classic sign of weakening bearish momentum and potential reversal
• ✅ Wave (5) completed at the bottom with confluence from price action and AO divergence

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🔁 Break of Structure & Confirmation
• ✅ Break of structure (BoS) occurred at 2.35064, confirming the end of the bearish impulsive wave and the start of a potential ABC corrective phase
• ✅ The BoS also coincides with a dominant structure break, giving higher confidence in the trend shift

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🟦 Current Price Action: ABC Corrective Wave Forming

We’re now in the early stages of a bullish corrective wave (ABC):
• 🔹 Wave A has likely completed
• 🔹 Currently expecting a retracement to form Wave B
• 🔹 Wave C target is projected based on Fibonacci extensions between 1.618 to 1.88, offering a high-probability take-profit zone (TP1)

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🎯 Trade Setup

Pending Buy Entry:
• 📍 Entry Zone: Fibonacci retracement between 0.382 – 0.618 of Wave A
• 🎯 TP1: Fibonacci extension of Wave C between 1.618 – 1.88
• ❗ SL: Just below Wave (5) low or below 0.618 zone, depending on risk tolerance

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🧩 Confluences for Bullish Setup
• ✅ Elliott Wave completion (Wave 5)
• ✅ Bullish Divergence on AO
• ✅ Break of Market Structure (BoS + Dominant BoS)
• ✅ Retracement into Fibonacci golden zone (0.382–0.618)
• ✅ Measured C wave extension to 1.618–1.88

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📝 Summary

The market has shown strong technical signals for a bullish corrective move after a clean Elliott 5-wave completion. With a confirmed divergence, break of structure, and upcoming ABC retracement, this setup offers a solid risk-to-reward opportunity. Watching the buy zone closely for a pending long trigger.

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🔔 Disclaimer:
This is not financial advice. Always conduct your own analysis and manage your risk accordingly.