XRP Approaches Critical Technical Support as Market Awaits Direction

XRP is testing key Fibonacci support levels that could affect its price trajectory into late 2024, as noted by analyst CasiTrades. Currently trading at $2.0995, the token’s near its 38.2% retracement level. Analysts foresee potential price movements with resistance targets above $2.2559, and a pivot support zone between $2.078 and $2.00 is critical for a possible turnaround.

XRP finds itself at a crucial technical juncture, according to crypto analyst CasiTrades, who shared insights on X. The token was trading at $2.0995 on Binance, down slightly by 0.16%. It’s really hovering just above the 38.2% Fibonacci retracement from its late-April rally, which might determine the direction for the rest of 2024.

The current pullback is significant. CasiTrades pointed out that “momentum is starting to pick up” as XRP tests one of its most important support levels in weeks. The analyst laid out a Fibonacci grid anchored at the swing high of $2.3622 from April 28, and a low of $1.6169 set on April 7. Notably, key retracement levels sit at $2.0775 for 38.2%, $1.9896 for 50%, and the crucial 61.8% at $1.9016.

Within this context, the $2.078 to $2.00 corridor has been marked as a critical support zone, which has previously acted as a pivotal area in price action. If XRP’s strength begins to return, the market might just start to rally from this region.

The recent price movement resembles a classic A-B-C corrective pattern. In brief, wave (A) took XRP below the 23.6% retracement of $2.1863, and wave (B) attempted a brief retest but fell short of the peak. The current phase appears to be wave (C), with the trend pushing into the $2.00-$1.90 area. CasiTrades even hinted that there might be a final dip before the momentum shifts in a positive direction, stressing that changes could happen quickly

Beneath the surface, momentum appears to be tiring. The one-hour Relative Strength Index (RSI) showed higher lows from late April to early May, despite declining prices, indicating a bullish divergence. This bullish trend is marked by a rising trend-line, with the RSI just under 40, suggesting the selling pressure may be abating as the price settles into support.

Now, looking up, there are Fibonacci levels creating a series of resistances above current prices. A notable barrier is set at $2.2559, which reflects the 38.2% retracement of a previous macro impulse. CasiTrades described this area as “major support” that has now flipped to resistance. Just beyond it, we’ve got the 11.8% line at $2.2743, while the prior recent peak at $2.36 caps the short-term trading range.

CasiTrades advised traders to be on alert as they look for XRP to gather momentum needed to breach the resistance at $2.25, with sights set even higher to $2.68 and beyond. There’s chatter among traders too about whether Bitcoin and Wednesday’s Federal Reserve meeting will exacerbate XRP’s movement, which was evident in the comments section. CasiTrades echoed a cautious optimism, noting that support levels should ideally be met with robust strength.

In a follow-up question, he suggested a staggered buying approach at levels of $2.08, $2.00, and $1.90, asserting these are the likely pivot support points. As of the latest update, XRP is trading around $2.14, and all eyes remain glued to those important technical levels.