XRP has experienced a bounce alongside the broader crypto market, prompting some traders to hope for a sustained recovery. However, CasiTrades, a noted analyst, warns that this rebound may be misleading, suggesting traders should remain cautious. The cryptocurrency recently edged back above $1.35, yet technical analysis indicates that the current setup could be more perilous than optimistic.
CasiTrades argues that this movement does not signify a genuine shift in market structure, but rather an oscillation within a larger bearish framework that remains intact.
This Bounce Could Be A Trap
In the analysis shared by CasiTrades, XRP appears to be pushing against resistance after completing a five-wave move. A critical observation is the bearish divergence observed on the Relative Strength Index (RSI), where upward momentum has not translated into a significant price breakout. At present, the RSI is nearing the upper limits of its recent range, reinforcing CasiTrades’ prediction of a potential bearish reversal.
The analyst speculates that recent upward strength may be merely indicative of exhaustion rather than an established reversal trend. Although bullish candlesticks appeared in the hourly timeframe recently, CasiTrades emphasizes that traders might be caught off guard. Despite the green candlestick, XRP has not succeeded in surpassing the $1.40 mark. The previously mentioned five-wave structure is now meeting a formidable resistance.
A rapid bounce can easily create the illusion of a trend reversal, especially when prices return to previously rejected levels. Yet, CasiTrades maintains that without a new high, the evidence points to mere fluctuation within a broader bearish pattern.
The Price Levels That Matter Most
This analysis culminates in a stark warning: XRP’s price is poised for another downturn, likely pushing it below the $1 threshold. CasiTrades points out that XRP currently sits precariously between critical support and resistance levels, with various indicators aligning towards a downward trajectory.
According to the chart outlined by the analyst, the initial target for a downward move is set at $1.13, marking a return to levels seen during February’s crash. CasiTrades anticipates this to be the first leg downward once the ongoing market noise settles.
Following the potential dip to $1.13, a slight relief bounce might occur before the price heads towards a more significant support level at $1.08. The ultimate bearish forecast predicts a breakdown below the key threshold of $1, potentially sliding into the 0.854 zone around $0.87. This scenario would signify the conclusion of a broader corrective impulse.
However, the bearish narrative is not set in stone indefinitely. CasiTrades reinforces this point by indicating that for bullish sentiment to gain a foothold, XRP must reclaim the 0.618 support level, particularly around $1.40.
