Will XRP (XRP) Price Bounce or Retrace Further? These Analysts Have Different Views

XRP (XRP) price fell 22% between March 19 and March 31, potentially forming a local bottom at $2.02. The price then increased by 9% to $2.20 before retracing to current levels.

The price of XRP (XRP) has fallen by 22% between 19 March and 31 March, potentially forming a local bottom at $2.02. From there, the price went up by 9% to reach $2.20 before retracing to current levels.

Is the popular altcoin finally at the bottom, or is a deeper retracement on the cards?

XRP shows bullish divergence on multiple timeframes

The XRP relative strength index (RSI) is displaying bullish divergence conditions in lower timeframes, according to analyst CasiTrades.

A bullish divergence is when an asset’s price prints lower lows and the RSI is making higher lows, which signals that the downward momentum is decreasing.

“After reaching the 0.786 retrace at $2.05, XRP is printing bullish divergences from the 15-min all the way up to the 4-hour chart,” the analyst said in a 31 March post on X. 

CasiTrades adds that these signals are a good indicator both for short-term bounces and potential macro recovery.

Credit: CasiTrades

She adds that $2.25 is a key resistance to watch, as breaking it with strong momentum would signal a strong bullish breakout. 

“If we break above $2.25 with great momentum, that will negate the need for another support retest, a very bullish sign,” CasiTrades said, adding that the demand zone between “$2.00 and $2.01 is still a support if the $2.05 doesn’t hold.”

The analyst is bullish on XRP for April, with targets of $2.70 and $3.80 in the short term.

Is the XRP local bottom in?

Despite XRP’s recent recovery from local lows, the risk of a deeper correction remains, according to veteran trader Peter Brandt.

Last week, Brandt said the presence of a “textbook” head-and-shoulders (H&S) pattern could see the XRP price as low as $1.07.

This potential H&S pattern is still in formation on the daily chart (see below) and will be completed on a break and close below the neckline at $1.90. 

If the price stays below the neckline, the pair could plummet to $1.50 and then to the pattern’s target of $1.07.

Brandt said:

“H&S is nearing completion. Targets are 38.2% of complete H&S to new high = $2.64 (met) and 100% H&S to neckline = $1.07.”

Credit: Cointelegraph/TradingView

Brandt said this bearish chart pattern would be invalidated if buyers push and maintain the price above $3.00.

Meanwhile, macroeconomic headwinds from US tariffs on 2 April may spook traders, pulling the XRP price toward $1.31.

Not everyone agrees. Analyst Dark Defender shared a positive outlook, saying that the XRP price is likely to revisit the last Fibonacci level at $2.04 before bouncing back again.

According to the analyst, a key resistance level for XRP is $2.22, which “should be broken” to ensure a sustained recovery toward the Wave 5 target at $8.

Credit: Dark Defender

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.