XRP is currently pressing into a significant confluence of Fibonacci supports that could play a crucial role in determining whether the late-2024 rally continues or comes to an abrupt halt. As of the latest data from Binance, XRP is trading at $2.0995, reflecting a slight decline of 0.16% on the session and resting just above the critical 38.2% retracement level from the rally observed in late April.
XRP Is Building Momentum
Independent analyst CasiTrades points out the importance of this current pullback, stating, “Momentum is starting to pick up, and XRP is dropping to one of the most critical support tests we’ve seen in weeks.” The analysis is anchored on the Fibonacci grid, which is delineated by the swing high of $2.3622 on April 28 and the low of $1.6169 recorded on April 7. From this range, key Fibonacci levels emerge: the 38.2% retracement at $2.0775, the 50% level at $1.9896, and the golden ratio 61.8% at $1.9016.
The analyst asserts that the corridor between the 38.2% and 50% retracements, specifically from $2.078 to $2.00, constitutes a “key support region.” Notably, this zone has served as a crucial pivot point in prior market behavior, suggesting that market strength could rebound from here.
The price action observed following the $2.36 high fits a classical A-B-C corrective pattern. The first wave (A) carried XRP below the 23.6% retracement at $2.1863, while wave (B) attempted to retest the overhead supply, ultimately falling short of the peak. Currently, wave (C) is indicated to be moving towards the $2.00 to $1.90 pocket. CasiTrades warned that there might still be one more flush or unexpected drop targeting the critical $1.90 level before momentum shifts, emphasizing that such moves can happen swiftly, often catching traders off guard.
Internally, there are signs of potential exhaustion. The one-hour Relative Strength Index (RSI) has maintained a series of higher lows since late April, despite spot prices trending lower, indicating a bullish divergence highlighted by a rising trend line. The RSI is currently hovering just below the 40 mark, suggesting a waning of selling pressure as XRP approaches its support levels. “On the lower timeframes, RSI is showing signs of selling exhaustion, and the price action is beginning to compress, often signaling that a significant move is imminent,” CasiTrades noted.
Key Resistance Targets
Above the current market price, Fibonacci levels from a broader swing reveal structured resistance tiers. A notable resistance level exists near $2.2559, which aligns with the 38.2% retracement of a prior macro impulse and has switched from major support to current resistance. Beyond this point, the 11.8% line sits at approximately $2.2743, with the previous peak of $2.36 acting as an upper cap for the short-term trading range. According to the analyst, “From these supports, we’re looking for XRP to gain strength to break past $2.25, $2.68, and beyond.”
In the commentary section, discussions have arisen among traders regarding whether Bitcoin and the forthcoming Federal Reserve decision could contribute to the final wave lower for XRP. CasiTrades expressed a desire for support tests to coincide with significant strength and a robust recovery. When inquired about ideal entry points for a long position, the recommendation was a staggered approach with entries at $2.08, $2.00, and $1.90, highlighting $2.00 as the most probable pivot support based on ongoing sub-wave analysis.
As of the latest market review, XRP is trading at $2.14, indicating a critical point of decision for traders and investors alike.
