Amid an ongoing recovery in the cryptocurrency market, XRP has shown promising signs after experiencing a significant decline to approximately $2.70 nearly two weeks ago. The asset has rebounded to surpass the $3 mark, but trading sentiment remains cautious as investors are on the lookout for clearer market direction.
Market analyst Christopher Inks, CEO of TWC, emphasizes that XRP must close above $3.3825 to confirm that its recent correction has concluded. Inks, speaking with Scott Melker on the “Wolf of All Streets” podcast, noted that XRP has been navigating a wide trading range since July, oscillating between a support level around $2.70 and resistance in the lower $3s.
Inks characterized the price dip earlier this month as a potential “spring” that could lead to re-accumulation of XRP. Following this drop, XRP successfully reclaimed its monthly pivot point at $2.962, marking a positive step in its recovery process.
He further elaborated that the crucial test for XRP lies at the $3.3825 level, which aligns with a descending resistance that has historically restricted rallies since the peak in July. A successful close above this threshold would signal the end of the correction phase for XRP.
Should XRP manage to break through this pivotal level, analysts predict that momentum could propel it towards a target near $4.42, which corresponds to the 1.618 Fibonacci extension of the current trading range. Along the way, a significant checkpoint is identified at $3.66, which marks XRP’s previous all-time high from the July rally and served as resistance leading to its recent decline. Clearance of this level would set XRP on a course for targets set at $3.94 and $4.27 before reaching the broader target.
Supporting Inks’ analysis, another analyst, Casi, has expressed a similar perspective, indicating that XRP has broken out of its prolonged consolidation phase and is currently working to establish $3 as a new support level. Casi pointed out recent price actions where XRP has touched resistance multiple times, pulled back slightly, and is now attempting to initiate a decisive upward movement.
Highlighting the strength of current momentum, Casi noted that the relative strength index (RSI) on the daily chart has an upward slope, with its moving average serving as support. This steady build of strength is often seen as a precursor to a significant breakout. She suggested that if XRP convincingly clears the $3 level, the key levels to monitor for further gains would be $3.08 and $3.27.
Fibonacci levels are also being closely watched. Casi identified the 0.382 retracement at $3.00, which has reportedly turned into support, and the 0.236 retracement near $3.25, acting as resistance. Overcoming these levels could facilitate a clean backtest, setting XRP up for another upward trend.
Looking ahead, Casi remains optimistic, predicting that larger Fibonacci extensions could guide XRP toward a target of $4.50, with the $3.66 level likely serving as a retest point once the anticipated breakout occurs.
Investors are advised to approach the market with caution and conduct thorough research before making any decisions, as the volatility in cryptocurrency markets can result in unforeseen shifts.
