XRP is showing signs of hesitation after a strong rebound and is struggling to break past key resistance levels. The recent price action fits neatly within an Elliott Wave pattern, indicating that the market may be entering the final phase of consolidation before the next big move unfolds.
Market breaks after the storm
CasiTrades, in a recent market updateexplained that prices have recovered impressively after last Friday’s sharp drop, but that momentum now appears to be losing steam. According to the analyst, such pauses are normal after strong moves. In Elliott Wave Theory (EWT), this type of slowdown corresponds to wave 4, a phase in which the market consolidates before preparing for the final impulsive wave.
The analyst emphasized that markets rarely reverse immediately after a big decline in Wave 3. Instead, they often complete an exhausted Wave 5 move to complete the momentum cycle before a new uptrend begins. However, CasiTrades noted that the market has not yet shown the strength needed to reverse the latest dip.
Price action is currently stagnant around the Wave 4 resistance levels. If the market were truly in a sharp V-shaped recovery, it should have already crossed the $2.82 resistance mark with strong momentum, but that has yet to happen. Given these circumstances, the analyst believes the market may need another wave to the downside to fully remove selling pressure and reset sentiment.
Market Data Chaos: No ‘Universal’ XRP Chart
CasiTrades further highlighted that market data across exchanges has become highly inconsistent, making accurate analysis a challenge. The analyst pointed out that each trading platform showed a different low during the recent crash, with some pairs falling below $1, while others managed to hold at much higher levels. With this disparity, CasiTrades advised traders to focus on the exchange they personally trade on to ensure accuracy, as there is no “universal” XRP chart.
According to the analyst, the price of While CasiTrades believes such extreme lows are unlikely to repeat, the next potential retracement levels around $1.46 (0.618 Fib) and the golden pocket near $1.35 remain key areas of interest. These zones correspond to multiple technical factors, including Wave 5 extensions, macro Fibonacci retracements, and Wave 2 targets.
The analyst explained that if XRP were to retest these deeper levels, it could trigger a strong reversal, potentially setting the stage for the long-awaited impulsive wave targeting the $6.50 to $10.00 range.
Despite the chaos caused by the recent market crash, CasiTrades sees a potential upside. She noted that the crash may have shifted XRP’s structure from a shallow Wave 4 correction to a broader macro Wave 2 retracement, which may precede the strongest impulse waves in the cycle.