- XRP forms double bottom, eyes major Wave 3 impulse.
- Key support at $2.79 crucial for upcoming bullish momentum.
- Targets for XRP’s Wave 3 set at $4.00, $4.40.
XRP has recently formed a double bottom pattern near $2.70, a key technical signal that suggests the potential for a trend reversal. The volatile drop to this level is considered by market experts as an exaggerated reaction driven by over-leveraged traders, rather than a sign of a major downturn.
According to CasiTrades, a prominent analyst in the cryptocurrency space, this price action marks the end of a consolidation phase, setting the stage for a significant upward move.
The key support level to watch is $2.79, aligned with the .5 Fibonacci retracement. CasiTrades notes that if XRP can maintain this support level and show bullish divergence on the RSI, it will likely trigger a Wave 3 impulse.
Wave 3, in Elliott Wave theory, is characterized by strong upward momentum. CasiTrades has identified price targets of $4.00 and $4.40 for this potential wave, which correspond to the 2.618 and 3.618 Fibonacci extensions.
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Key Price Levels and Market Outlook
Support at $2.79 is critical for confirming the Wave 3 setup. If XRP can hold above this level, it would signal that the market is positioning for a substantial rally.
According to CasiTrades, the next major targets for XRP are $4.00 and $4.40, with these levels representing significant resistance points in the current market structure. These targets are based on Fibonacci extension levels, and if they are reached, it would indicate the continuation of the bullish trend.
However, should XRP break below $2.70, the current bullish structure would be invalidated, and the price could dip to the next support at $2.58, corresponding to the .618 Fibonacci retracement. This would likely trigger a deeper correction before any potential recovery.
Overall, XRP’s market structure remains robust, and the outlook remains positive if the $2.79 support holds. As CasiTrades suggests, the next few days are crucial in determining whether XRP is truly setting up for a Wave 3 impulse, with a potential rally toward $4.00 and $4.40 if the support holds strong.
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