Amid the current XRP pullback, a market expert recently predicted a further drop to a major support level before a rebound to 2021 highs.
XRP is one of the victims of the ongoing market-wide pullback, dropping by over 1% in the last 24 hours. Interestingly, at the start of the current retracement, market analyst MichaelXBT predicted a further price slump before an eventual rebound to new heights.
XRP to Face Further Drop
In an analysis yesterday, the market commentator called attention to an ascending channel on the 4-hour XRP chart, which has prevailed since mid-November. Such a channel, which features higher highs and higher lows, confirms that bulls are in complete control of the market.
However, data from the chart shows that XRP retested the upper trendline of the channel when it spiked to a peak of $1.63 on Nov. 23. This top presented resistance that coincided with the latest retracement in the broader market.
As a result, XRP price slumped, initially dropping to the $1.41 region. While at this level, MichaelXBT predicted a steeper decline, which he noted could push XRP to retest the lower trendline of the ascending channel. Such a retest could grant bulls the necessary strength to engineer a decisive rebound.
Interestingly, this price drop materialized, with XRP collapsing by nearly 11% across two 4-hour candlesticks to a low of $1.2795 yesterday. Notably, this price level aligned with the lower trendline of the ascending channel.
A Possible Rebound to 2021 Highs
Following the retest, XRP has now embarked on a recovery campaign, as MichaelXBT envisioned. At the time of reporting, the altcoin has increased by more than 14% from the $1.2795 low. MichaelXBT shared an update to the analysis, confirming that prices are moving according to plan.
— Crypto Michael (@MichaelXBT) November 24, 2024
If XRP continues to follow the trajectory laid out by the market watcher, its price will likely breach the previous $1.63 resistance level. According to MichaelXBT, XRP’s recovery could allow it to retest again the upper boundary of the channel, which now sits at around $1.7.
Notably, a breach of the upper boundary would give bulls enough strength to knock at the 2021 top of $1.96. This level served as a major resistance zone for XRP during the 2021 bull run. Market veteran Peter Brandt believes XRP price could explode if it breaks above this level.
On the daily chart, the next major Fibonacci resistance stands at 1.618 ($2.34), surpassing the 2021 peak. However, as XRP currently trades for $1.47, its Relative Strength Index (RSI) stands at 86. While this confirms robust market strength, it also suggests an overbought condition, which warrants caution.
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