XRP is displayed signs of a possible bullish turnaround after recently hitting a Golden Pocket. Analysts say this Golden Pocket could trigger a strong rebound in the XRP price, potentially pushing it towards $2.50. At the same time they predict that a price drop to new lows remains possible if the market does not develop as expected.
In an X-post on Monday, crypto market analyst CasiTrades said announced that XRP has reached a Golden Pocket, highlighting an upcoming W4 rebound that could fuel a rally to $2.5. Sharing a detailed Elliot Wave Chartshe noted that XRP experienced an expected flush the Golden Bag around the Fibonacci level of 0.618 near $1.93. At the same time, the cryptocurrency aligned well with the 1.618 extension for Wave 3, which CasiTrades describes as a textbook example.
XRP Golden Pocket Signals Rise to $2.5
According to the analyst, this sets the stage for a full relief from Wave 4. She pointed out that the first resistance to watch is the Fibonacci Retracement level of 0.382 at $1.78, which also coincides with a previous support crisis and could serve as a backtest of resistance.
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CasiTrades noted that XRP experienced a very shallow Wave 2, only returning to the 0.382 Fibonacci level in the Elliott Wave chart structure. She explained that modest Wave 2 corrections often indicate a deeper Wave 4 retracement, indicating the The XRP price could experience a steeper pullback during the next correction phase before the uptrend may resume.
Based on this pattern, the analyst stated that Wave 4 could push XRP higher and possibly reach the $1.93 level from the current price of around $1.60. She added that the cryptocurrency could rise further to $2.03, which corresponds to the macro retracement level of 0.5. CasiTrades highlighted that XRP would need to regain the $2.03 level and hold as support before a sustained upward move could begin. This highlights $2.03 as a major turning point that could lead to a price decline XRP’s Next Breakout Phase above $2.50.
The analyst further explained that keeping $2.03 as support would eliminate the need for a new one corrective wave to $1.55 or lower. She added that maintaining this level could also prevent Wave 5 from failing.
What happens if support fails
In its Elliott Wave analysis, CasiTrades admitted that “nothing has been confirmed yet,” leaving its bullish outlook for XRP speculative. She noted that XRP’s recent decline has led to new lows a bullish divergencebut the market could still return to lows.
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CasiTrades said that XRP’s bullish scenario will only be confirmed once it breaks the key resistance level. The accompanying chart highlights the potential downside of support failure, predicting a drop of around 8% from $1.60 to $1.47.
Featured image from Getty Images, chart from Tradingview.com