XRP responded positively to heightening selling pressure with a notable rebound earlier in the week, but nothing much has changed.
The relief rally mirrored a broader recovery in the crypto market, with XRP rising 6% on Wednesday to $1.493. While it has relinquished some of that gain, it continues to move away from $1.11, a 15-month low it retested on February 6. At the time of writing, the coin has now increased 27% from this low.
Yet, some believe nothing much has changed for XRP.
Key Points
- XRP responded positively to heightening selling pressure with a notable rebound earlier in the week, but nothing much has changed.
- It seemed the rally was all noise, as XRP recorded no structural change to the earlier bearish formation.
- Analysis highlights two price moves that could alter the macro plans for XRP: a drop to the $1.08-$0.87 support zone or a surge above the $1.67 level.
- Until any of this happens, analysis suggests it is all noise and price consolidating within the range.
XRP Rally Did Not Break Resistance
Experienced market analyst CasiTrades does not see much changing for XRP despite the recent rebound. In a quick X update, she claims that the broader plan for the coin has not changed.
It seemed the rally was all noise, as XRP recorded no structural change. Specifically, the analyst highlighted that XRP did not break resistance, hence adding no new context to its broader price trend.
Meanwhile, this builds on her earlier analysis that XRP is well within bearish territory. After completing waves (A), (B), and (C) in a multi-wave price structure, the altcoin fell below a key support during a price retest.
An extending ascending trendline from the wave (B) lows was meant to provide cushion for the ongoing corrective phase before the next leg up. However, this failed to happen amid heightened selling pressure, forcing a breach of the demand zone.
The Wednesday attempt to invalidate the bearish development proved abortive. Although XRP reclaimed the support, it did not break a key resistance level at $1.65.
Noise Until One of These Happens
Building on this, she identified two price moves that would change the macro plans for XRP. In the first scenario, she expects XRP to keep its broader bearish structure and retest lower prices. Her bottom targets, if this happens, are the 0.786 and 0.854 Fibonacci levels at $1.088 and $0.865, respectively.
In the second scenario, XRP breaks above the $1.67 resistance level, shifting its structure bullish. This would breed further upside to $1.78 and the psychological $2 price mark. Until any of this happens, CasiTrades believes it is all noise and price consolidating within the range.
The analyst added that sub-waves suggest that the $0.87 macro support could be the bottom. If the price fell this low, she disclosed that she would add a “hefty buffer” in anticipation of a major reaction. Notably, none of these directions is guaranteed for XRP, as the current setup signals massive uncertainty.
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