XRP’s drop now sparks optimism as an expert suggests the drop could be beneficial as long as XRP holds above $1.94.
Market analyst Casi remains optimistic about XRP’s bullish potential, despite its recent decline.
After dropping to the lower end of the $2 price range, XRP has tested traders’ patience.
Casi emphasizes that the altcoin can maintain its upward momentum, provided it holds a crucial support level.
Positive Outlook Amid Market Turmoil
Casi’s insights emerged on December 5, shortly before XRP experienced a significant 9% drop, currently trading around $2.26.
This downturn aligns with a broader market decline that has affected nearly 584,000 traders.
Interestingly, this market crash coincided with Ripple CEO Brad Garlinghouse’s recent appearance on a “60 Minutes” segment, further amplifying interest in XRP.
As XRP retests the lower $2 level, Casi has refined her analysis to reflect the current situation.
She pointed out that a 0.382 retracement aligns with XRP’s Fibonacci extension targets, particularly its all-time high (ATH) of $3.50.
However, she underscores the importance of the $1.94 support level: if it holds, the bullish targets remain within reach.
Recent Price Action and Context
XRP recently dipped to a low of $1.96, marking a 14% intraday loss—the first time it has fallen below $2 since reclaiming that level on December 2.
Fortunately, XRP has since shown signs of recovery.
Should another downturn occur, maintaining support at $1.94 will be crucial for the bulls.
Casi had previously outlined two potential scenarios for XRP’s price movements when it was trading at $2.40.
The first scenario involves an ABCDE correction pattern.
If this correction finds support at the 0.236 Fibonacci retracement level of $2.31, the next bullish wave could push XRP to $3.74, potentially breaking through its ATH.
In the second scenario, a deeper correction may follow an ABC pattern.
Here, the completion of wave C at the 0.382 retracement level ($1.94–$2.04) could still pave the way for recovery, targeting XRP’s ATH of $3.50.
A break above this resistance, confirmed as support, could reignite bullish momentum, establishing a critical pivot zone between $3.50 and $3.74.
Technical Analysis
Casi’s one-hour chart analysis supports these scenarios, indicating that the recent price action has formed a descending structure, suggesting a potential end to the correction.
Key support levels include the 0.236 retracement at $2.31 and the broader range near the 0.382 level between $1.94 and $2.04.
Notably, the RSI indicator shows bullish divergence, signaling a possible return of buying pressure even as the price continues to dip.
In summary, while XRP faces challenges, the underlying analysis suggests that maintaining key support levels could set the stage for a significant rebound, preserving its bullish outlook.
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