XRP, the popular altcoin, has experienced a significant drop of 22% between March 19 and March 31, potentially establishing a local bottom at $2.02. Following this decline, the price increased by 9% to $2.20 before retracing again, prompting the question: has XRP finally bottomed out, or are we in for a further decline?
XRP’s Bullish Divergence Across Timeframes
According to prominent analyst CasiTrades, the relative strength index (RSI) for XRP displays signs of bullish divergence across lower timeframes. This phenomenon occurs when the asset’s price prints lower lows while the RSI shows higher lows, suggesting a waning downward momentum.
CasiTrades commented, “After reaching the 0.786 retrace at $2.05, XRP is printing bullish divergences from the 15-minute chart all the way up to the 4-hour chart.” These signals are seen as positive indicators for both short-term rebounds and longer-term recovery.
“That’s the kind of signal we want to see for both short-term bottom and macro! The bounce is holding so far!”
Looking ahead, the $2.25 level is crucial; a strong momentum breach above this price could indicate a convincing bullish breakout.
CasiTrades remarked, “If we break above $2.25 with strong momentum, that would invalidate the need for another support retest—a very bullish sign.” Furthermore, the demand zone around $2.00 to $2.01 serves as support should $2.05 fail to hold.
The analyst envisions a bullish April for XRP, targeting $2.70 and $3.70 in the short term, stating, “Once the price reaches its target, I expect a large impulse to the upside! Key resistance is aligning to $2.70 and $3.80.”
Assessing the Local Bottom for XRP
Despite recent recovery signs, veteran trader Peter Brandt warns of the potential for a deeper correction. He noted the emergence of a “textbook” head-and-shoulders pattern that could potentially see XRP prices fall as low as $1.07.
This pattern remains a concern on the daily chart, with a critical neckline at $1.90. Should XRP close below this threshold, it could plunge to $1.50 and eventually reach the target of $1.07.
“Below $1.90, I would not want to own it. H&S projects to $1.07. Don’t shoot the messenger.”
Brandt indicated that the bearish pattern could be negated if buyers manage to push and sustain the price above $3.00.
Meanwhile, potential macroeconomic challenges, such as new US tariffs, could add volatility. Some analysts speculate that this could pull XRP prices toward $1.31.
However, not all analysts share this pessimistic view. Dark Defender provides a more optimistic outlook, suggesting that XRP may revisit $2.04 before bouncing back. He noted that key resistance around $2.22 should be breached for a sustained recovery, targeting a longer-term Wave 5 goal of $5-8.
“April-May will be hot, and our targets of Wave 5 stand at $5-8 levels, as expected.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making decisions.
