XRP price began May with a retest of a key support level, but an analyst is eyeing this as a precursor of a bullish rally.
Notably, XRP price is currently trading at $2.21, reacting to a recent rejection at the $2.25 resistance area. At press time, XRP price trading at $2.20, a 0.02% surge in the last day and a 4% increase over the past 30 days.
Despite the rejection, a crypto analyst has forecasted a bullish outlook, noting that the rejection is prepping the XRP price for a breakout.
XRP Short-Term Correction Hints at Bullish Breakout
According to crypto analyst CasiTrades, on the 4-hour chart, XRP has entered an Elliott Wave correction phase following a failed breakout above $2.25. After breaking above its long-term downtrend in early April, XRP formed a short impulse wave to around $2.27.
🚨May Begins with a Critical Back-test — XRP’s Next Move Could Sooner Than Many Realize!
It’s May 1, and a new month is here with #XRP coming right up against one of the most important structural levels on the chart – $2.25-
After failing to hold above that level, $XRP has… pic.twitter.com/i8N4oTVYNX
— CasiTrades 🔥 (@CasiTrades) May 1, 2025
What followed was an ABC corrective wave structure that continues to unfold. The first leg, representing Wave A, triggered a downward move to $2.0157. After this, a minor rebound in the form of Wave B emerged, pushing XRP price to the $2.2743 zone. Meanwhile, current price movement suggests a developing C wave that may complete between $1.90 and $1.95.
According to CasiTrade, Fibonacci retracement levels are supporting this, with $1.9016 aligning with the 0.618 retracement level—a zone often associated with major support. RSI on the same timeframe has held above oversold levels and is forming a bullish divergence, where price made a lower low, but RSI did not. This is often an early indicator of weakening downward momentum.
However, this correction is happening within a larger uptrend buoyed in part by the XRP ETF odds of approval rising and Proshares XRP ETFs launch set for May 14. Moreover, XRP price has consistently formed higher lows and higher highs since breaking its previous downtrend in early April consistent with the early stages of a new bullish cycle.
XRP Price Chart Shows Broader Bullish Reversal
Additionally, XRP’s structure continues to follow the Elliott Wave progression on the daily timeframe. A large five-wave upward movement that began around $0.30 reached its peak near $3.30 before transitioning into a broader correction. This correction unfolded in a WXY pattern, with the final low forming near the $1.44 to $1.54 range.
These levels aligned with the 0.618 and 0.65 Fibonacci retracements, where buying pressure returned and price stabilized.
The reversal from the final low zone formed a bullish double bottom near $1.33, followed by a strong upward move that reclaimed the $2.00 area. The neckline of the double bottom was broken, and the price continued upward into the $2.25–$2.30 resistance band.
Holding above $1.90, which corresponds to the 0.5 retracement, supports the idea that the corrective wave has completed and that a new impulse wave may be starting.
Moreover, the RSI on the daily chart stands at 54.61, confirming a healthy uptrend backing the bullish recovery to $3.
Meanwhile, another analyst, Egrag Crypto, has issued a more aggressive forecast, suggesting XRP could print a mega monthly candle, placing the target at $17 by the end of May.
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.
