The cryptocurrency market is buzzing with speculations as analysts dive into the movements of various coins, particularly XRP. Recent evaluations by crypto expert CasiTrades have raised eyebrows, indicating that a potential drop could be in play before a significant upward trend takes off. Financial enthusiasts are keen to monitor this situation as the altcoin aims for recovery.
Target Levels for XRP as it Approaches a Critical Phase
CasiTrades highlighted the significant price point of $2.715 as a potential final low for XRP. In a detailed tweet, she explained that this level represents the bottom trendline of a consolidation period. Interestingly, this price point would not constitute a new low in the ongoing correction. Following this, XRP faced a notable rejection at the $3 resistance, further raising questions about its next moves.
The altcoin’s recent performance also revealed a loss of critical fib support at $2.79, which was subsequently retested as resistance. The sharp rejection indicates strong selling pressure, as indicated by the Relative Strength Index (RSI). This could suggest that XRP might need to dip further to clear out this correction phase, reinforcing CasiTrades’ belief in the potential drop to $2.715.
Moreover, CasiTrades pointed out that while there are signs of divergence forming on higher timeframes, smaller timeframes haven’t completely played out yet. This developing situation portrays the unfolding of larger downward momentum, represented as a potential fifth wave, suggesting XRP might still experience additional drops.
Other altcoins, like Ethereum and DOGE, have seemingly reached their corrective targets. In contrast, XRP might require one last decline to mitigate selling pressure before the market sentiment can pivot towards bullishness.
Critical Indicators to Monitor for XRP
CasiTrades stressed the importance of observing the 1-hour RSI, which has shown a bullish divergence and is maintaining a clear trendline. A terminal drop to the aforementioned price level could help affirm the exhaustion of selling pressure. Furthermore, a price recovery above $2.79 by the end of the day would serve as a significant bullish indicator, especially if it successfully transitions back into a support level.
The crypto analyst assured that the current market actions regarding XRP are part of a necessary shakeout rather than a sign of weakness. The combination of tight consolidation, followed by volatility, followed by exhausted selling signals, sets the ground for an upcoming major breakout and potential new trends. However, in a contrasting view, analyst Ali Martinez cautioned that XRP might fall even lower than the projected floor at $2.715. He highlighted a gap between $2.73 and $2.51 that could further complicate the situation.
As of now, XRP is trading at approximately $2.78, reflecting upward movement in the past 24 hours, as reported by CoinMarketCap.
