XRP’s price has been dipping lately, dropping about 1.26% over the past week. After hitting a high of $2.58 on May 15th, it’s now around $2.06. But one analyst thinks a big price swing is on the horizon.
A Bullish Prediction?
Crypto analyst CasiTrade (@CasiTrade on X) believes XRP is at a crucial point. They see a descending triangle pattern forming on the daily chart, suggesting a breakout (up or down) is imminent. The key, according to CasiTrade, is the Relative Strength Index (RSI). The RSI is breaking down, indicating lower volatility and potential price pressure building up. This, combined with the triangle pattern, points to a possible move.
The “Flush Before the Fly” Theory
CasiTrade doesn’t see this potential drop as a total crash. Instead, they think it’s a necessary “flush” – a final price drop to gather enough buying pressure for a significant price increase. They’ve identified potential support levels at around $2.01, $1.90, and $1.55. These levels hold until XRP closes decisively above $3.
Two Scenarios for XRP
CasiTrade outlines two possible scenarios:
-
The V-Shaped Recovery: XRP could drop to one of the support levels and then bounce back sharply in a “V-shaped” recovery, indicating a market bottom.
-
The Exhaustion Wave: XRP might approach the support levels, stall, or even bounce slightly before experiencing a final downward push before the predicted bullish reversal.
XRP’s Current State
At the time of writing, XRP is trading at $2.13, down about 1.3% for the day and over 10% for the month. To start climbing, bulls need to break through the resistance at $2.37. A successful breakout could push the price towards $2.60.