XRP Produces Successful $3 Support Retest – But What Next?

Renowned market expert with X username CasiTrades has shared an interestingly bullish insight on the XRP market. Notably, this price forecast comes following a broader crypto market correction in the past week, during which XRP has registered a 6.74% price decline.

In an X post on July 25, CasiTrades shows that XRP is on the brink of a major price surge based on the indications of the Elliot Wave Theory – a technical framework that proposes that price movements occur in five repetitive waves.

Amidst the price decline in the last week, XRP failed to hold above the critical $3.21 price level, forcing a retrace to retest the major $3.00 support zone, resulting in a slight price bounce. Despite this bearish event, the analyst notes encouragingly that the altcoin did not form a new price low, suggesting the larger bullish structure remains intact.

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CasiTrades explains that XRP’s latest retracement reached a deep 0.854 Fibonacci level, a classic reversal zone for second waves in a bullish five-wave structure. This deep pullback, combined with the strong bounce off $3.00, signifies the potential bottom of Wave 2. If bulls can hold the price above this support, this sets the stage for the beginning of Wave 3, the strongest and most explosive leg in the Elliott Wave Theory.

For context, the Elliot wave theory begins with an initial price rise, i.e, Wave 1, followed by Wave 2, a pullback that doesn’t breach the starting point. Wave 3 is usually the strongest and longest, driven by increased participation and bullish momentum. Meanwhile, Wave 4 brings another correction, often less severe than Wave 2, before Wave 5 pushes prices to a final high.

For Wave 3 to commence in the present market, CasiTrades states the next price target lies at the $3.21 region, which represents a crucial resistance. If XRP produces a sustained breakout above this price barrier, it validates the proposed bullish scenario.

In this case, the analyst identifies an immediate price target of $3.82, which aligns with the 2.618 Fibonacci extension of the prior move. Interestingly, this price zone also represents XRP’s all-time high on certain markets. This confluence strengthens confidence in the bullish scenario,  especially considering that if the Elliott Wave structure plays out fully, a Wave 5 rally could propel the altcoin into uncharted price territory.

At the time of writing, XRP is valued at $3.20 following a price rebound of 5.52% in the past 24 hours.