The XRP Bounce Is Over: Here’s What Could Play Out Next

A recent analysis has ruled out further XRP recovery, highlighting a clean setup for the next wave of a bearish trend to lower price levels.

XRP failed to sustain its recent recovery attempt. It jumped to a high of $1.39 on April 7 but bears quickly stepped in and took prices lower again. However, beneath this higher price rejection is a more concerning development, one with greater bearish implications for short-term price action.

Key Points

• XRP jumped to a high of $1.39 on April 7, but that high could mark the end of a price recovery.
• The recovery produced the needed wave of relief rally to complete a broader bearish structure.
• Further price downturns could follow, and the target is the 0.786 Fibonacci extension at $1.085.
• If the market remains weak and bears still control proceedings, a deeper correction to $0.86 could occur.
• Despite the expectations of further bearish developments, analysis still maintains a long-term bullish view on XRP.

XRP Bounced, but There’s a Catch

The Tuesday bounce saw XRP appreciate by 4.4%, rising from an intraday low of $1.29 to reach $1.39 before consolidating to close at $1.37. The increase followed a positive development in the ceasefire discussion between the United States and Iran.

However, there could be more to this bounce, according to an analysis from experienced market watcher CasiTrades. In a recent X post, she attributed the move to a broader bearish formation, which eventually targets lower prices.

She stated that the Tuesday high marks the end of the XRP price recovery. This is because the recovery produced the needed wave of relief rally to complete a broader bearish structure. According to her, the push gave the clean wave 2 bounce to the 0.618 Fibonacci retracement level, where she earlier speculated would cap further uptrends.

Interestingly, the prices seem to be moving in line with her plan, as XPR has retraced from its high, aligning with the broader crypto market trend. It has pulled back by 4.3% to its current market price of $1.33.

The Real Move Is Coming

CasiTrades now expects a wave 3 move downwards. An accompanying chart shows that the target is towards the 0.786 Fibonacci extension at $1.085, representing an 18% pullback from the current market price. According to her, this move would happen quickly.

Notably, the accompanying chart indicates this may not be the end of the downtrend. If the market remains weak and bears still control proceedings, a deeper correction to the 0.854 Fibonacci level at $0.86 could occur. However, before this, another relief bounce from $1.085 to around $1.20 may first play out, forming wave 4.

Despite the expectations of further bearish developments, the analyst still maintains a long-term bullish view on XRP. Her chart suggests that once the correction is over, the prominent altcoin will begin an impulsive upward move. Interestingly, this outlook sees even a new all-time high of $6 as a conservative target.

Conflicting Short-Term XRP View

While CasiTrades predicts further corrections, analyst Dark Defender offers a contradictory view. He shared in a recent post that XRP has formed a base around the $1.30 support, and new highs are in sight.

Further fueling this sentiment is XRP’s break above a descending resistance trendline on the 3-day chart. The commentary suggests that this, alongside a bullish RSI crossover, could propel the coin to a new all-time high.