XRP Hits Golden Pocket: Potential Relief Bounce Could Lift Price to $2.50

XRP

Summary:
XRP is showing signs of a possible bullish reversal after hitting a Golden Pocket, which could lead to a relief bounce towards $2.50. However, analysts warn that a price drop to lower levels may still occur if market conditions do not align as predicted.

Key Takeaways:

XRP recently hit a Golden Pocket, indicating a potential upward movement.
Analysts predict a possible rise to $2.50.
Key resistance level to watch is the 0.382 Fibonacci level at $1.78.
If $2.03 is reclaimed as support, a breakout above $2.50 might occur.
If support fails, a decline towards $1.47 is possible.

XRP Shows Signs of Bullish Turnaround

XRP has recently hit a significant point known as a Golden Pocket, suggesting it may be on the verge of a bullish turn. Analysts are optimistic that this could signal a strong relief bounce, potentially pushing XRP’s price toward $2.50. However, they also caution that if market conditions do not unfold as anticipated, XRP might experience a drop to new lows.

In a post shared on X, crypto market analyst CasiTrades highlighted that XRP's recent touch on the Golden Pocket could initiate an upcoming Wave 4 relief bounce. Utilizing an Elliott Wave chart, she indicated that XRP's price dipped into the Golden Pocket around the 0.618 Fibonacci level, which is located near $1.93. This movement perfectly aligned with the 1.618 extension for Wave 3, illustrating what CasiTrades calls a "textbook move."

Potential Rally Ahead

CasiTrades noted that reaching this Golden Pocket sets the groundwork for the beginning of the full Wave 4 relief phase. She emphasized that the first resistance level to monitor is the 0.382 Fibonacci Retracement at $1.78, which coincides with a previous support breakdown and may serve as an area of backtesting resistance.

Related Reading: XRP May Reach $11, Then $70: Watch for the Next Impulse Wave

CasiTrades pointed out that XRP experienced a shallow Wave 2, only retracing to the 0.382 Fibonacci level within the Elliott Wave framework. Such modest corrections in Wave 2 often point to a deeper retracement in Wave 4. This means XRP might experience a stronger pullback during the next corrective phase before potentially resuming an upward trend.

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Source: Chart from CasiTrades on X

According to the analyst's observations, Wave 4 could drive XRP's price higher, potentially reaching the $1.93 level from its current position of around $1.60. Moreover, she noted that XRP could advance further to $2.03, which is the macro 0.5 retracement level. CasiTrades highlighted that for a sustained upward movement to commence, XRP must reclaim and hold the $2.03 level as support. This price point is critical for triggering XRP's next potential breakout beyond $2.50.

Furthermore, holding $2.03 as support would reduce the likelihood of needing another downward correction toward $1.55 or lower. It would also help in preventing the failure of Wave 5.

Risks of Support Failing

When analyzing the Elliott Wave, CasiTrades remarked, “nothing is confirmed yet,” referring to her bullish outlook for XRP as speculative. She pointed out that XRP's recent drop created a bullish divergence; however, the possibility of revisiting lower price levels still exists.

CasiTrades mentioned that XRP’s bullish scenario will only gain confirmation with a breakthrough of the key resistance level. The accompanying chart indicates the projections if support fails, predicting a potential decline of about 8% from $1.60 to around $1.47.

XRP
XRP trading at $1.60 on the 1D chart | Source: XRPUSDT on Tradingview.com