Following the Bitcoin price correction, XRP appears to have entered another bearish phase, dropping below $3 once again. Nevertheless, XRP has managed to maintain significant levels, in contrast to Bitcoin, which has plunged to new local lows. This indicates that XRP is behaving differently from Bitcoin and might experience a rally, even as Bitcoin’s price remains low during this period.
Why XRP Price Holding Above $2.9 Is A Positive Sign
Despite falling below $3, the XRP price has consistently remained above $2.9, a crucial macro level for its value. As crypto analyst CasiTrades points out in a post on X, the XRP price continues to uphold its broader consolidation pattern, even approaching the important trend line at $2.91.
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In the midst of a market downturn, altcoins like XRP are beginning to show bullish divergences. This suggests that the decline might be temporary, with a potential rally on the horizon. While there’s a discussion about weakening momentum below this level, the crypto analyst believes this might indicate that XRP could soon experience a relief bounce.
As long as XRP trades within this current consolidation level, there remains a chance for bulls to regain control of the altcoin. Sitting at the 0.618 Fibonacci level, the crypto analyst notes that this is the ‘golden retrace’ area, historically known to pave the way for a bullish continuation.
Currently, XRP seems poised to continue a textbook Elliot Wave continuation of Wave 3. In contrast to Wave 2, Wave 3 is a bullish wave that typically propels digital asset prices to new local peaks, and occasionally, to new all-time highs.
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For the time being, the critical level that the XRP price must maintain is at $2.9. Casi indicates that as long as this level serves as a support block for the altcoin, it could signal the initiation of a new bullish trend that may drive the altcoin to unprecedented all-time highs.
The target for the continuation of Wave 3 lies above $5.3, surpassing the current all-time high of $3.8. This would represent an increase of over 80% from the current price.
Featured image from Dall.E, chart from TradingView.com
