XRP has reached a structural juncture that demands attention from any trader following Elliott Wave methodology. Elliott Wave analyst Brian Kim identified that XRP has now entered a second-wave corrective phase. The structural implication is clear in one direction only: the correction is not yet finished, and acting on the current price level carries meaningful risk.
What makes this moment analytically interesting is not the correction itself but the absence of a legible pattern within it. Kim stated directly that the ABC wave structure is not yet clearly visible, which is precisely why he advised against entering a position now. For traders accustomed to buying dips, this is the kind of structural ambiguity that invites premature entries. The corrective wave may look like a buying opportunity from the outside, but until the internal wave count resolves into a recognizable shape, the entry signal has not appeared.
This analysis unpacks Kim’s wave count across three structural themes: the scope of the current second-wave correction, the internal 5-3-5 structure of a zigzag that defines what a completed correction would look like, and the historical context from XRP’s recent five-wave top that frames why the corrective thesis is credible.
The Second-Wave Correction and Its Retracement Targets
Kim opened his analysis by establishing that XRP is currently in a second-wave correction following the completion of a five-wave impulse. He described the common retracement levels that second waves tend to reach, and he identified the 61.8% retracement level as the standard reference point. In his own words, he noted that 61.8%, which he also expressed as 618, corresponds to $1.25. He consistently returns to this figure as the most common retracement destination for a second-wave correction.
He also acknowledged that the correction could travel further. Kim stated that a second-wave correction can also reach the 78.6% retracement level, which he described as less common but not unusual. He presented these two levels as distinct scenarios. In the preferred scenario, the correction reaches the 61.8% level at $1.25. In the alternate scenario, the correction extends to the 78.6% level, implying a deeper pullback. He did not combine these two outcomes into a single expectation, and neither should any reader of this analysis.
A key condition governs both scenarios equally: neither price level by itself constitutes a buy signal. Kim was explicit that reaching $1.25 does not automatically mark the end of the correction. The pattern must complete in a recognizable wave structure before any entry is justified. He framed the 61.8% and 78.6% levels as zones where the correction could conclude, not as guaranteed turning points.
He also noted that the recent low came in at $1.35, where a bounce occurred. He described this as a short-term support level where the recent rebound originated, and he acknowledged that the bounce from $1.35 amounts to roughly 50% of the expected retracement distance. In his view, this partial recovery does not resolve the corrective structure. The wave pattern is still unfolding.
The Zigzag Structure: Why the ABC Pattern Matters
Kim placed significant emphasis on what a properly completed second-wave correction looks like in Elliott Wave terms. He described the common pattern for a second wave as a zigzag, which carries the internal designation ABC, and he specified that the internal sub-wave count for a zigzag follows a 5-3-5 structure. He stated this directly: the A-wave contains five sub-waves, the B-wave contains three sub-waves, and the C-wave contains five sub-waves. He compressed this into the shorthand 535.
This structural requirement is the foundation of his patience argument. Until XRP produces a wave sequence that clearly displays all three legs of the ABC structure with the correct internal counts, the corrective phase is not complete. Kim stated that the ABC waves are not yet clearly visible in the current chart, and this is the reason he advised waiting. He did not speculate about where each sub-wave would begin or end. He simply observed that the pattern has not yet formed clearly enough to act on.
He drew a visual analogy during the analysis, describing a scenario in which the A-wave completes, followed by a B-wave rebound, and then a C-wave that brings price down to the 61.8% or 78.6% zone. He noted that if such a pattern appears, that is the moment to consider a purchase, because completing that structure would signal that the prior uptrend is prepared to resume. He then added that a new five-wave count would begin from that point. However, he framed this as a conditional scenario contingent on the pattern appearing, not as an assured sequence.
The 535 internal structure is significant precisely because it is demanding. A trader watching for this pattern must see not just three price swings but the correct internal granularity within each. This is what separates a wave-based entry from a simple price-level entry. Kim’s argument is that patience at this stage is not passivity but structural discipline.
Historical Context: The Ending Diagonal and Past Broadcast Calls
Kim grounded his corrective thesis in a review of XRP’s prior five-wave advance, particularly the behavior of the fifth wave. He recalled that the fifth wave completed as an ending diagonal, which he described as a pattern that reverses the prevailing trend. He noted that once the ending diagonal finished, XRP moved sharply higher without delay.
He also referenced past broadcasts to illustrate the reliability of the wave count. He recalled telling his audience during a prior session that they needed to wait before entering XRP because the fifth wave was not yet visible. He described a moment where the fifth wave was not showing a clear five-count, which is what led him to advise waiting. The ending diagonal eventually resolved, the fifth wave completed, and the rally followed.
He also mentioned a specific threshold from his past analysis: he had stated that exceeding 94cent was not acceptable under his wave count at the time. He said that he drew a line at that level during broadcasts in what he referenced as the August and June periods, and that the market ultimately reached 98cent before reversing sharply upward. He cited this sequence as evidence that the Elliott Wave framework was producing accurate structural signals even when the count appeared ambiguous at the surface. He then noted that the price reached only the 98cent level before reversing sharply upward.
The relevance of this history to the current setup is not that the past repeat will happen mechanically, but that the analytical framework has been tracking XRP’s structure with consistency. Kim stated that the Elliott Wave analysis has been producing all the counts as they formed, and he described the framework as serving a guiding function in his process.
Entry Conditions and the Case for Waiting
Kim concluded his analysis with a direct statement of strategy. He described XRP as positive in the broader structural sense, acknowledging that the trend has shifted following the five-wave advance. However, he was careful to separate the overall structural view from the immediate trading posture.
For traders who missed the prior advance and are looking to re-enter, he advised waiting. He stated that the wave count should be monitored for the completion of the ABC corrective structure before any purchase is made. If the pattern develops and brings price down to the 61.8% level at $1.25 and the ABC count becomes clearly visible, that is the scenario in which he said a buy would be appropriate. He also noted the alternate possibility that the correction travels further to the 78.6% level, and he stated that if a recognizable pattern appears at that deeper level, the same logic would apply.
The central discipline Kim is communicating is that wave completion, not price level alone, is the entry trigger. He made this explicit by stating that the ABC waves are not yet clear, and that buying without that clarity is premature regardless of where the current price sits relative to any retracement level. The structure has to be readable before the trade is justified.
From a risk management standpoint, the support level at $1.35, where the recent bounce originated, remains a reference point in the analysis. However, Kim did not present a price-based stop or invalidation level in this session beyond the retracement zone framework. His attention was directed entirely toward pattern recognition as the governing criterion.
XRP’s Elliott Wave structure, as described by Kim, is constructive over the longer horizon but demands structural confirmation before a new entry is warranted. The corrective wave has begun, the common target zones are $1.25 at the 61.8% retracement and the deeper 78.6% level, and the ABC zigzag pattern with its 535 internal count is the shape to watch for. Until that shape becomes clearly visible, the analyst’s position is unambiguous: wait.
Full video analysis: https://youtu.be/HFcU3rC5SWk?si=TSRF_RiV05TmPJ9C
