XRP has bounced With the rest Cryptocurrency market, but this recovery is exactly what analyst CasiTrades warns traders not to misunderstand. Cryptocurrency It’s just come up a little It bounced above $1.35, but technical analysis shows that the setup could be riskier than it seems.
CasiTrades’ rationale is that this is not a real change in structure yet, but another move within a larger bearish pattern It still hasn’t been revoked.
This bounce can be a trap
According to Shared chart with In the analysis, XRP is shown pushing towards resistance in a complete five-wave move. The analyst coupled this with bearish divergence on the RSI, as momentum rose even as the price failed to make a stronger breakout. Currently, the RSI is pressing near the upper border of its recent range, supporting the idea of a bearish reversal suggested by CasiTrades.
The analyst’s idea is that the last force may be more stressful. There have been bullish candles on the hourly time frames over the past few days, but according to the analyst, this is exactly where traders are busy. Despite the green candle, the XRP price has yet to make a new high above $1.4. Instead, the above-mentioned five-wave movement began to encounter resistance.
A quick rebound can look like the beginning of a reversal, especially when the price returns to the same area it recently rejected. However, without a new high, nothing has changed. This is still just noise within the same larger pattern.
The most important price levels
The basis of this analysis is the warning that the price of XRP could still reverse into another extended collapse that will eventually take it below $1. According to CasiTrades, XRP is still trading between support and resistance, and multiple degrees are in line with a downtrend.
The chart shows a very specific road map of the most important price levels on the way down. The first downside target is at $1.13, which CasiTrades considers to be the initial lower leg Once the current noise disappears. This would represent a return to the lowest price for XRP during the collapse that occurred in early February.
This projection allows for a short bounce after touching $1.13 before moving back to the overall support of 0.786 around $1.08. The last stop in the downward sequence is the expected breakout below $1 and into the 0.854 support area around $0.87. This move will mark the end of a larger corrective impulse wave 2.
The bearish state does not remain valid forever. CasiTrades explains this by pointing to the upper 0.618 area where the bulls need to reclaim the level and turn to support. Which The target is around $1.40.
Featured image from Getty Images, chart from Tradingview.com
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