XRP May Experience Another Decline Before Targeting $2.25

XRP has seen significant price fluctuations in recent times, according to an analysis of its Elliott Wave structure. The token's August rally was one of its strongest since 2021, with a 28.5% increase from $1.00 to nearly $1.70. Much of the buying interest came after XRP had already posted a significant upward push.

The analysis suggests that the correction following this rally may not be over yet, which leaves room for another decline before a possible move towards $2.25. On the hourly chart, XRP reached a high of around $1.69 in August, just below the major resistance area between $1.90 and $2.10.

The Elliott Wave count treats this rise as Wave 1, which represents the first major move in a larger uptrend. With this structure, Wave 1 normally leads to Wave 2, a correction that gives back part of the earlier gains. XRP's September decline fits a possible Wave 2 pattern, with the price now near $1.38.

The analysis suggests that XRP could first recover towards the $1.53-$1.62 area before falling again and completing Wave 2. This means the token may experience another short-term rebound before making a final move lower instead of immediately starting a sustained rally. The $1.10 level remains especially important for the bullish setup, as long as XRP avoids closing below this level, the potential Wave 3 setup remains valid.