A trader and cryptocurrency analyst asserts that XRP's bullish momentum remains intact despite the recent correction. The analyst notes that XRP's response to the $2.75 level is crucial, and the asset has successfully reclaimed the $3 resistance level.
Key Support and Resistance Levels
According to Casitrades, a professional trader and cryptocurrency analyst, XRP's bullish momentum remains intact despite a recent correction. In a post on X, Casitrades stated that the digital asset's response to the '$2.75 is a significant test' and that it has reacted positively by reclaiming the $3 resistance level. The analyst suggests that if XRP continues to hold above $3, it may recover the momentum that led to a new all-time high in July.
Market data shows that XRP underwent a significant correction, dropping from a high of $3.32 on July 28 to a low of $2.72 on August 2. This sharp decline raised concerns among investors that the bullish momentum had run out and that the bears were in control. However, the digital asset climbed back, briefly touching $3.10 on August 5 before stabilizing and consolidating around $3.05.
This recent volatility follows a similar pattern from late July when XRP previously dropped below the important $3 level on July 24 before bouncing back. At that time, experts like Casitrades initially suggested that this indicated 'the end of the correction and the beginning of a new upward phase.' However, XRP's deeper drop below $3 in early August means that the digital asset has not fully rediscovered its upward momentum.
"The strong rally has failed to break through with any real strong momentum or continuity," Casitrades said. "The rejection at $3.31 has become our first major hint that the bounce from $3 may just be part of a corrective pattern (B-wave in a larger ABC). When XRP lost support at $3.00, we saw the price drift down to the next major Fibonacci level: the .5 retracement at $2.75."
Potential for a New Bull Run
With XRP having reacted well since testing the $2.75 level, analysts believe it could build a structure to sustain another bullish move. According to Casitrades, the charts also show signs of potential bullishness on both short-term and long-term charts, making the possibility of a bullish run more likely.
"Looking ahead, properly reclaiming the $3.21 level and a strong breakout would start to confirm that the correction is complete and a new upward phase is underway. If this happens, our next target range remains around $4.60–$4.80, with the psychological level of $4.00 continuing to rise in importance as a potential milestone on the way up," the analyst added.
