XRP has just dropped below $3, but the market may not be as pessimistic as it seems. The price has retraced to the Fibonacci level of 0.382 at $2.96, a significant support zone. The wick at $2.94, coinciding with the sub-wave target of 0.618, quickly reversed and regained the $2.96 level. This rapid recovery is a typical phenomenon often observed when the market hits a bottom.
According to market analyst Casi Trades, the current situation could open the door for XRP to stabilize and potentially aim for higher targets, with a price like $4.80 already in sight.
XRP Holds Steady at $2.96
The latest price movement of XRP has accurately reflected what technical analysts are waiting for. The Relative Strength Index (RSI) further reinforces the hypothesis of a bottom. The RSI has shown bullish divergence on both the 15-minute and 1-hour charts.
While prices are declining, the RSI indicator shows higher lows, signaling that momentum is shifting in favor of buyers. Combined with the clear 5-wave downward move on the chart, Casi Trades believes this confirms XRP has completed its correction phase.
The analyst explains that the drop to $2.96, followed by an immediate recovery, indicates that the market is "hunting for a bottom and XRP has done just that." The combination of Fibonacci levels, divergence signals, and clean wave structure makes this support zone one of the most crucial in the current cycle.
Bullish Outlook and Price Targets
Now that XRP has hit and held the support level of $2.96, traders are focusing on the next phase. Casi Trades notes that XRP may oscillate around this level or retest it, but holding this level has already been a positive sign.
Market analysts expect large-cap cryptocurrencies, including XRP, to lead the next wave of price increase. With confirmed support levels, attention is now shifting to bullish targets. The most significant target mentioned is $4.80, but the analyst believes that the upward momentum could push XRP even higher if conditions remain favorable.
This bullish outlook is driven not only by XRP's chart but also by broader market conditions. Large-cap stocks often move in the same direction when market sentiment improves, and XRP holding steady at $2.96 is a strong signal. "From these low support levels across the market, I expect things to get interesting and bullish," Casi Trades commented.
If the strong upward momentum continues, XRP's recovery from this support zone could mark the beginning of a strong price increase.
Currently, all attention is on the $2.96 level. As long as XRP stays above this level, the likelihood of a bullish trend remains very high. The market is indicating that prices will rise higher, whether immediately or after a short accumulation phase. With bullish potential up to $4.80 and beyond, XRP's sharp decline may just be a prelude to the next significant advance.
