- XRP tested a double bottom at $2.70 and quickly recovered, maintaining the macro .5 retracement at $2.79 as key short-term support.
- Analysts are expecting a slight retest at $2.79 that supports a bullish RSI divergence, suggesting a legitimate strong buy would be upcoming before Wave 3.
- Wave 3 target areas of Fibonacci extensions at $4.00 and $4.40 suggest upward momentum in a continued hold above $2.79 support.
After a consolidation period, XRP made a double bottom at approximately 2.70, and this signified a reversal of the trend. The move indicates that the market is possibly laying the groundwork for a Wave 3 impulse to new highs.
Double Bottom Holds Key Support
XRP’s recent price action produced a sharp wick to $2.70, briefly testing market stability. Analysts consider this move part of a valid Wave 2 count as long as the level holds. A drop below $2.70 would reset the trend scenario.
CasiTrades explained on X, “Any new low beneath $2.70 would reset the trend count. The wick was an exaggerated reaction from overleveraged traders.” This highlights that the brief decline was likely a reaction, not a structural breakdown.
The market quickly recovered above the macro .5 retracement at $2.79. Candle bodies have respected this level since, showing that support remains strong. Traders typically watch retracements to assess consolidation strength.
A minor retest of $2.79 is expected before XRP begins Wave 3. Analysts are looking for lower lows in candle bodies paired with bullish divergence on the 4-hour RSI, which could generate a strong buy signal.
Wave 3 Targets and Potential Resistance
XRP’s next move may focus on Fibonacci extensions for resistance. The 2.618 and 3.618 extensions indicate potential targets around $4.00 and $4.40, aligning with the expected Wave 3 trajectory.
CasiTrades emphasized that if $2.79 support holds, the market may build bullish divergence on the RSI, increasing the likelihood of an upward impulse. This could position XRP for a significant rally.
If XRP falls below $2.70, the Wave 2 count would be invalidated. Price may then target the macro .618 retracement at $2.58 as the next key support before attempting another upward move.
XRP has, to this time, maintained its market structure and recaptured its pivotal support. Price action around the area of $2.79 will be crucial to determine whether Wave 3 can begin and whether higher targets within the region of $4.40 are possible.
