Experts now say XRP must stay above $2 for a bull run to continue after facing significant bearish pressure.
The recent downturn in the cryptocurrency market has not left XRP unscathed.
After trading at $2.58, the token experienced a sharp 15% drop, falling to $2.18.
This decline has prompted analysts to reassess XRP’s future trajectory and the critical support levels it must maintain.
Analyst Insights on XRP’s Position
Casi Trade, a well-known analyst, has provided a comprehensive update on XRP’s precarious situation.
Her analysis indicates that XRP has breached significant support levels and is currently resting just above the 0.236 Fibonacci retracement level.
This development necessitates a reevaluation of both wave counts and the overall market structure.
Key Scenarios for XRP’s Future
Casi outlined two potential scenarios for XRP’s movement:
- ABC Correction: This scenario suggests that XRP could experience a Wave 2 correction, finding support along the trendline aligned with the current market structure.
- Extended Bearish Movement: Alternatively, XRP could continue its downward trajectory, breaking below the trendline.
Both scenarios hinge on XRP’s ability to maintain crucial support in the $1.90 to $2.00 range, which corresponds to the 0.382 Fibonacci retracement level.
Casi expressed cautious optimism, suggesting that it’s unlikely XRP will fall below this zone, offering some hope for bullish investors.
If XRP fails to hold above the $2 mark, it may face further declines.
However, a rebound from the current trendline could pave the way for a potential recovery.
As of now, XRP is attempting to recover from yesterday’s steep decline and is trading at $2.33, although it still reflects a 6.21% drop over the past 24 hours.
A “Springboard” to New All-Time Highs
Market commentator Chad Steingraber echoed similar sentiments regarding XRP’s price movement around the vital $2 level.
In his recent tweet, he suggested that a “double tap” at $2 could act as a “springboard” for XRP to reach new all-time highs.
He remains optimistic about the token’s upward trajectory, asserting that nothing could impede its progress.
Bullish Consolidation or FOMO-driven Moves?
XRP critic IncomeSharks also weighed in on the coin’s potential price movement, emphasizing the importance of the bulls defending the supertrend level around $2.
He believes that establishing a bullish consolidation pattern would provide a strong incentive for investors to buy XRP again.
However, he cautioned against the initial large daily candles, labeling them as FOMO-driven movements that often lack sustainable buying pressure.
He concluded that if the green line holds, it could represent a more rational entry point for potential buyers.
Conclusion
In summary, the outlook for XRP remains promising, provided that it can maintain crucial support levels around $2.
Analysts are closely monitoring the situation, as the next few days could determine whether XRP will continue its upward trajectory or face further challenges.
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Also Read: XRP’S Drop Now Sparks Optimism
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