XRP recently broke through the important support level at $2.25 and has now confirmed this level as resistance upon retesting. This development marks a significant structural change in the current trend. According to technical analyst CasiTrades (@CasiTrades), this retest may be the precursor to the next bearish move.
The chart shows the unsuccessful attempt to reclaim the $2.25 level. After the incident, price action has slightly recovered after the bullish divergence in the lower time frame. However, this brief rally faced rejection at the previous support area, which has now turned into resistance. The price was $2.239 at the time of her analysis, unable to convincingly break through the new ceiling. The price has since dropped and is currently trading at $2.17.
Support Levels to Watch
While other analysts maintain a bullish outlook, CasiTrades expects a short-term downturn. The current market structure shows that XRP is nearing a critical inflection point, and the analyst recently revealed that the market has run out of time, and XRP must decide its direction.
The chart highlights a converging triangle pattern, with XRP approaching the apex. A breakout from this tightening range is likely to drive the asset's price towards lower support areas.
The next key support levels are at $2.01 and $1.90, with a potential further drop to $1.55. The Fibonacci target of 1.236 is marked at $2.0200, reinforcing the importance of the $2.01–$2.02 area as a possible landing point if bearish pressure continues.
Momentum Divergence and RSI Pressure
The Relative Strength Index (RSI) is also approaching the wedge breakout zone. The RSI has formed lower highs while maintaining a flat base; a breakout or rejection here could coincide with a price move in either direction.
The RSI is currently oscillating near the neutral 50 mark, and momentum has yet to regain higher levels despite prior bullish divergence. Unless divergence forms on higher time frames, rejection at $2.25 may intensify.
Next Move for $XRP
As time passes before the price reaches the convergence point, XRP is preparing for a decisive move. If the $2.25 level continues to act as resistance, the bearish case will strengthen, especially considering the unfinished Fibonacci levels and the clear bearish retest pattern.
Although she believes there is a short-term downturn, CasiTrades notes that 'this could be the final support level before a major breakout.' Another prominent analyst recently predicted a remarkable 725% increase for this digital asset, and the tightening Bollinger Bands of XRP suggest that the asset may experience a strong recovery, invalidating the bearish move and potentially targeting new highs.