Some prominent analysts believe XRP is on track to experience a temporary pullback before recording a more explosive price surge.
This opinion is shared by market watchers Trader Fred and Crypto Ed, who have forecasted a short-term correction before an expected bullish surge. Notably, their analyses came up as XRP outperformed the rest of the market, recording an uptrend where others declined.
XRP witnessed a dramatic rebound following a collapse to $0.54 on July 19. This rebound allowed it to recover the $0.65 high yesterday for the first time in four months. The upsurge marked a 72% increase over a 20-day period, as XRP aimed for $0.70. Amid the rally, Binance XRP deposits exceeded 3 billion tokens on July 29.
XRP Poised for a Correction
However, the latest analyses confirm that the next direction for XRP is down. Trader Fred identified a significant resistance level at $0.70 that XRP has not yet tested.
According to his analysis, a correction is imminent before XRP can gather the necessary momentum to break this resistance. His chart indicates several key support levels at $0.5711, $0.5408, $0.4983, and $0.4550, suggesting that the price may decline to these levels before rebounding.
An Imminent Rebound Post-Correction
He noted that his plan is to short XRP at this level. He believes this correction is a preparatory phase for XRP to build the strength for a future rally past $0.70. While the market may experience short-term fluctuations before stabilizing, Fred expects an imminent push toward the $1 level.
Meanwhile, another analyst, Crypto Ed, presents a slightly different perspective but aligns with the overall expectation of a short-term correction.
His chart features a completed 5-wave Elliott pattern, indicating the end of a mild bullish cycle and the onset of a corrective phase. He called attention to a bearish divergence in the RSI, where the RSI witnessed lower highs as XRP’s price recorded higher highs. This supports the expectation of a weakening bullish momentum.
Ed identifies $0.55 as a critical support level where XRP might find stability during the impending correction. His analysis suggests that this pullback will provide an opportune moment for traders to enter the market, as a substantial rebound is expected to follow.
XRP Current Market Condition
The chart illustrates a potential decline to $0.55, followed by a significant upward surge. Interestingly, at the reporting time, XRP has already begun this corrective phase, having collapsed 2.10% today. XRP is now retesting the psychological support level at $0.60, as the bears attempt to breach this defense.
The spike to $0.65 yesterday coincided with a retest of the upper Bollinger Band ($0.6512), resulting in the expected rejection. Currently trading for $0.6097, XRP remains above the 20-day SMA ($0.5906). However, if the bears successfully breach below the $0.60 psychological defense, a retest of this moving average could follow.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
