CryptoInsightUK, a prominent market analyst, has shared what his base case for XRP is in the short term, identifying where he’ll be taking a long position.
His latest disclosure comes on the back of the ongoing market turbulence triggered by concerns around potential trade wars and other macroeconomic fears. Notably, XRP has continued to face challenges, especially after the 34% spike on March 2 following President Donald Trump’s Strategic Reserve announcement.
XRP Retracing 34% Upsurge
After that spike, XRP collapsed by a massive 18.79% on Monday, March 3, giving up most of the gains picked up the previous day. The asset is struggling to recover some of the lost values, but the bears have not made this rebound easy.
Notably, as XRP began its crash later in the day on March 2, CryptoInsightUK called attention to the 4-hour chart that day, suggesting that the bearish price action might continue for some time. At the time, XRP still held above the $2.6 price level. However, the analyst suggested that further drops below this level would ensue.
He pointed to the massive uptrend from earlier in the day, which led to the formation of three large 4-hour green candles. According to him, the market typically drops after such large green candles and in some cases, the asset will fully retrace the gains from such upsurge. As a result, he expected further declines for XRP.
CryptoInsightUK predicted that XRP would pull back to the $2.3 region, after which he plans to take a long position at this price level. However, he noted that after this drop, XRP could witness another impressive rebound to greater heights.
XRP Following Bitcoin Price Action
His idea that this decline would materialize came from an observation of a similar price action from Bitcoin (BTC) last year.
Notably, at the time, BTC first dropped to a low of $49,647 on Aug. 5, 2024, and then recovered. However, this recovery led to another pullback, leading to a higher low of $52,546 on Sept. 4, 2024, within the range of the previous low. After this higher low, BTC rose, pulled back a bit and then skyrocketed.
Interestingly, XRP appears to be following this price pattern. For context, XRP observed its first low when it dropped to $1.7 on Feb. 3 amid a broader market downturn. After the recovery that followed, the asset witnessed a higher low when it declined to $1.95 on Feb. 28.
Now, CryptoInsightUK believes the March 2 uptrend is the initial upsurge, after which a pullback would occur, like in the case of Bitcoin, before XRP eventually explodes. This pullback has just materialized as predicted, with XRP dropping to $2.2 on March 4.
If XRP continues to follow the analyst’s prediction, then a recovery from this pullback could lead to an explosive price surge. So far, XRP has recovered but this price surge is yet to materialize. CryptoInsightUK’s projection, while unspecified, suggests a run to the $4 range could be possible. According to him, this is his base case.
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