XRP still maintains its bullish momentum despite the recent drop, according to market analyst Casi.
Notably, XRP recently dropped to retest the lower end of the $2 price level, testing the patience of traders. Despite this setback, analyst Casi Trades has maintained her optimism, suggesting that the altcoin can sustain the bullish momentum if a major support level holds.
Positive Perspective Amid Crash
Casi’s initial analysis came up on Dec. 5. However, XRP has collapsed 9% since then, currently trading for $2.2. The bearish pressure comes on the back of a broader downturn, which recently liquidated nearly 584,000 traders across the market.
Interestingly, the crash also coincides with Ripple CEO Brad Garlinghouse’s interview at a 60 Minutes segment. As XRP retests the lower end of the $2 level, Casi updated her analysis to address the current downturn.
☀️Here’s some positive perspective on this correction: A .382 retrace still aligns our extension targets perfectly with #XRP's previous ATH—markets love this kind of symmetry!
Unless $1.94 is broken, this target holds! https://t.co/VxDAq7Pyy5— CasiTrades 🔥 (@CasiTrades) December 10, 2024
She noted that a 0.382 retracement aligns XRP’s Fibonacci extension targets perfectly with its ATH at $3.50. However, she stressed the importance of $1.94 as a support level. If this level holds, the bullish targets remain achievable.
XRP’s crash pushed it to a bottom of $1.96 yesterday amid a 14% intraday loss. This marked the first time XRP collapsed below $2 since it reclaimed the level on Dec. 2. Despite this, XRP has since recovered. Should another drop ensue, the bears must maintain $1.94.
Initial Analysis and Additional Context
For context, Casi had initially outlined two scenarios for XRP’s price trajectory when the price traded for $2.4. The first scenario involves an ABCDE correction pattern. If this correction finds support at the 0.236 Fibonacci retracement level ($2.31), the next bullish wave could extend to $3.74.
The analyst pointed out that this price mark would correspond to a 0.618 Fibonacci extension and potentially mark a clean break above XRP’s all-time high (ATH). Such price movement would set the stage for a test of support at higher levels.
Meanwhile, the second scenario considers a deeper correction following an ABC pattern. Here, the completion of wave C at the 0.382 retracement ($1.94–$2.04) could still create the pathway for a recovery.
The rebound would target XRP’s ATH of $3.50. Breaking this resistance and confirming it as support would likely re-ignite the bullish momentum. Notably, the range between $3.50 and $3.74 remains a critical pivot zone, where the market will define future trends.
XRP 1H Chart
Interestingly, the 1-hour chart from Casi confirms these technical commentaries. According to data, recent XRP price action formed a descending structure, signaling that the ongoing correction could see an end soon.
Major levels of support include the 0.236 retracement at $2.31 and the broader range near the 0.382 level between $1.94 and $2.04. Further, the RSI indicator shows bullish divergence, as price continues to dip while RSI rises, hinting at buying pressure returning.
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.
