XRP may drop to $1.55 before an explosive rise, warns analyst.

XRP has surpassed the descending trendline that had repelled all rallies since February, but the position of derivatives suggests that the apparent breakout may still end with a liquidation, according to the independent market technique CasiTrades. The four-hour Binance chart shows the token gravitating around $2.32, slightly above the upper limit of the triangle, but on the verge of losing that gain if leverage forces unwind.

Casi frames the setup in terms of Elliott waves, maintaining that the advance from January to June completed a wave (1) at approximately $2.70 and then corrected to $2.02 at the 1.236 Fibonacci extension, thus sketching out wave (2) against the base of the triangle. The technique argues that the new momentum above resistance could mark the birth of wave (3), although the funding dynamics cloud this optimistic reading.

The eight-hour funding rates have already reached 0.01%. Casi insists that if they expand to 0.02% without a decisive price movement, algorithms will seek the accumulated liquidity below $2.25. She warns that such a move would drag XRP through the reclaimed breakout level and expose $2.01, $1.90, and potentially $1.55.

The current scenario remains ambivalent. The fourteen-period RSI on the same chart hovers near 62.5 but registers lower peaks while the price rises, suggesting a bearish divergence that often accompanies volatility peaks. However, the breakout above the black trendline cannot be ignored: if sellers fail to reclaim this line quickly, Casi's wave (3) projection points to $3.77 via the classic external Fibonacci extension of 1.618, with an even higher target above $4.40 later this summer.

Casi summarizes the situation straightforwardly: "Volatility is almost inevitable. Whether it is a last dive or a significant breakout, the next move will likely define the rest of the summer." Traders, therefore, face a binary path. Either the increase in funding catalyzes a liquidity sweep towards $1.55 before catapulting XRP upwards, or the token consolidates above $2.25 and transforms the budding breakout into a launchpad towards $2.69, the barrier near $3.04, and eventually, the wave (3) target of $3.77. At the time of publication, XRP was trading at $2.25.