Analysts See Price Relief for XRP Near $2.13 Support Level

Recently, cryptocurrency analyst known as CasiTrades shared a detailed technical analysis on the XRP market, indicating a potential short-term price recovery. Despite XRP experiencing a decline of over 7% over the last week amid broader market corrections, the analyst anticipates a possibility for quick relief contingent upon the crucial support level being defended.

Market Context and Recent Performance

In the past week, the cryptocurrency market has faced significant pressure, leading to price corrections across many assets. XRP has not been immune to these movements, falling approximately 4.86% in just one day. As of the latest data, XRP is trading at $2.14, marking a decrease of 3.01% over the past month. This depreciation correlates with a notable increase in daily trading volume by 57.32%, indicative of escalating selling pressure as investors react to market volatility.

Technical Analysis Highlights

CasiTrades highlights that the XRP price has retreated to its 0.118 Fibonacci retracement level, currently set at approximately $2.196. This dip has brought the asset into a historically significant trading zone for short-term scalp trades. According to the analyst’s framework, the optimal entry point for investors stands at $2.20, with an anticipated price target of $2.253 corresponding to the 0.236 Fibonacci retracement level. The use of Fibonacci retracement levels is a common technique in technical analysis, allowing traders to identify potential support and resistance zones based on past price movements.

Strategic Considerations for Investors

While CasiTrades’ analysis underscores a well-structured scalp setup that capitalizes on the volatility for quick gains, he emphasizes that a price increase to $2.253 does not imply a definitive market reversal. Instead, he notes that sustained bullish momentum is necessary for XRP to surpass this level, with subsequent price targets projected at $2.333, $2.395, and $2.456. These targets reflect Fibonacci extensions, offering additional upside potential if the market turns favorable.

Importance of the $2.13 Support Level

Key to this trading strategy is the maintenance of a strong support level at $2.13. CasiTrades warns that if the price were to decisively fall below this threshold, it could invalidate the entire scalp setup, potentially leading to further declines and a first major support target at approximately $1.77. The importance of stop-loss orders in volatile trading environments cannot be overstated, providing a safety net for investors against unforeseen downturns.

Market Sentiment and Future Predictions

The XRP market, despite its recent fluctuations, maintains a market capitalization of approximately $125.04 billion, positioning it as the fourth-largest cryptocurrency. Analysts like Crypto V have voiced bullish sentiments for XRP, even projecting that the market cap could soar to $790 billion before the conclusion of 2025, underscoring a strong belief in the asset’s long-term viability.

Technical Indicators and Their Implications

Examining the technical indicators further, XRP is currently trading below its 200-day moving average, a signal often interpreted by traders as indicative of a potential bearish trend. Additionally, the Relative Strength Index (RSI) stands at 36.47, approaching the oversold zone, which historically can suggest an impending price rebound. A recovery to around the $2.30 level, should bullish momentum develop, remains a plausible scenario as traders position themselves based on these indicators.

Conclusion

With several critical levels to monitor in the near term, investors in XRP should remain vigilant and prepared to make informed decisions based on market developments. If bulls can successfully defend the crucial support at $2.13, the road to potential recovery and further gains may remain open.

Featured image from Pexels, chart from Tradingview

Source: newsbtc