XRP Price Prediction: Will XRP Bounce or Break Down From This Key Support Level?

The cryptocurrency market has been highly volatile in recent weeks, with altcoins experiencing significant fluctuations amid broader macroeconomic uncertainties.

The cryptocurrency market has been highly volatile in recent weeks, with altcoins experiencing significant fluctuations amid broader macroeconomic uncertainties. Among the most widely followed digital assets, XRP saw its price plummet to as low as $2.0238 on Monday.

However, since then, the token has managed to rebound by nearly 6%, sparking debates among traders and analysts about whether this marks a local bottom or if further retracements are still on the table.

In the wake of these price movements, two prominent chart analysts, CasiTrades (@CasiTrades) and Charting Guy (@ChartingGuy), have shared their perspectives on XRP’s short-term and long-term trajectory. While some indicators suggest a potential recovery, others highlight the possibility of additional declines before a sustained bullish trend can take hold.

What is Crucial for XRP in the Short-Term?

CasiTrades recently published an analysis suggesting that XRP has tested the crucial 0.786 Fibonacci retracement level at $2.05. This technical indicator is often associated with significant support zones in crypto markets, and its role in XRP’s recent price action has been a subject of discussion among analysts.

According to CasiTrades, bullish divergences are forming across multiple timeframes, ranging from 15-minute charts to the 4-hour timeframe, which could indicate that the token is poised for a short-term rebound or even a larger macro recovery.

The Fibonacci retracement tool is widely used by traders to identify potential reversal levels. In this case, the 0.786 level is a strong support zone, and XRP’s reaction to this level has led some analysts to believe that a local bottom may already be in place. However, price action in the coming days will be crucial in determining whether this thesis holds true.

Is A Deeper Retracement Possible?

Charting Guy, another well-known analyst, presents a more cautious outlook on XRP’s short-term prospects. According to his analysis, the recent bounce from $2.02 low could be nothing more than a short-term relief rally rather than the beginning of a sustained uptrend.

Charting Guy highlights a few key technical factors that could indicate further downside for XRP. Despite the optimistic divergences noted by CasiTrades, Charting Guy remains skeptical due to the weak buying volume throughout this recent rally.

He also notes that while the $2.02 low could form a local bottom, traders should be prepared for potential price fluctuations and the possibility of further declines if key resistance levels are not broken decisively. According to his analysis, the next crucial resistance zone lies around $2.35. A decisive move above this level could set the stage for a more extended recovery. Conversely, failure to hold $2.05 as support might open the door for a retest of lower levels.

On-Chain Metrics and Market Sentiment

Beyond technical analysis, on-chain metrics provide additional insights into XRP’s current state. Some key indicators that traders follow include:

Macroeconomic Influences on XRP’s Price Action

Cryptocurrency markets do not operate in isolation, and macroeconomic conditions exert a significant influence on price movements. Some key factors currently affecting XRP and the broader crypto market include:

Key Support and Resistance Levels

For traders monitoring XRP’s price action, the following levels could serve as key areas of interest in the coming trading sessions:

A decisive break above $2.35 might spark a more extended recovery, while failure to hold $2.05 as support from the sellers could lead to a retest of lower levels.

Final Thoughts: What’s Next For XRP Price?

In conclusion, XRP has shown signs of stabilization after reaching a low of $2.0238, but the debate continues as to whether the token has found its local bottom or if further downside is still possible. Analysts like CasiTrades highlight bullish divergences and key Fibonacci support levels as technical indicators that suggest a recovery may be unfolding.

However, Charting Guy remains more cautious, presenting an analysis that focuses on weak buying volume and technical resistance levels that could limit XRP’s upside potential in the near term.

Ultimately, the next few trading sessions will be critical in determining XRP’s next move. Investors should closely monitor key support and resistance levels, such as the 0.786 Fibonacci retracement level at $2.05, as well as broader market trends and macroeconomic developments to make informed decisions.

Only time will tell whether this recent bounce marks the beginning of a sustained uptrend or a temporary relief rally before another round of price weakness sets in. However, one thing is certain: XRP continues to be a focal point in the ever-evolving cryptocurrency landscape.