XRP A slight increase on Tuesday That was no cause for celebration, at least not according to cryptocurrency analyst CasiTrades. The recent price action pushed the cryptocurrency as high as $1.39, resulting in what appears to be a temporary rally. However, one analyst believes The real move didn’t happen However, the current price action is only preparing for a bigger downward push It can surprise traders.
A clean wave structure indicates a larger fermentation process
The price of XRP rose to $1.39 on April 8 with the Pakistan-brokered ceasefire between the US and Iran. It led to a wave of short liquidations via the cryptocurrency market, And feelings He moved from extreme fear to cautious, neutral optimism.
But cryptocurrency analyst CasiTrades, who was tracking the XRP wave structure, saw something different in the price action. She says the bounce was exactly what the chart needed to complete the corrective structure. Now, the real action has begun.
According to Kasi Trades. XRP’s recent XRP price rebound marked the completion of the corrective phase. The move to the 0.618 Fibonacci retracement level, which appears on the chart around the $1.35 to $1.40 range, helped confirm what you know as a clean wave 2 in the Elliott wave structure.
This move completed the opposite trend move without breaking the broader bearish count. Although the rebound was strong, it failed to breach the Fibonacci and XRP levels Now back to trading Priced at $1.32. Therefore, the next expected move is impulse wave 3 that continues the correction.
What the chart says
CasiTrades analysis shows a five-wave impulsive decline on the 1-hour time frame. According to its count, XRP had already completed wave 1 down and wave 2 up by the time the ceasefire reached its peak. With Wave 2 now likely to have completed, attention turns to what typically follows in Elliott Wave Theory: Wave 3, the strongest and fastest move in the sequence.
The target for the conclusion of wave 3 is around $1.09, which corresponds to the 0.618 Fibonacci retracement level. The fourth wave is then expected to rebound to $1.20. After that, a fifth wave continuation could follow, with the 0.786 extension at $1.0854 and the 0.854 extension at $0.862 serving as deeper structural targets if the move is fully executed.
The current macro environment offers some bullish factors that can negate the bearish outlook. Both are bullish The operators are encoded by the CLARITY law, Which is scheduled to be held in the second half of April, and Any progress on a ceasefire in Iran. However, if the CLARITY Act stops and the war continues, the $1.30 XRP support may break, and the price may fall.
Featured image from Adobe Stock, chart from Tradingview.com
Editing process Bitcoinist focuses on providing well-researched, accurate, and unbiased content. We adhere to strict sourcing standards, and every page is carefully reviewed by our team of senior technology experts and experienced editors. This process ensures the integrity, relevance, and value of our content to our readers.
