After the Bitcoin price retracement, XRP seems to have entered into another bearish trend that has sent it below $3 once again. However, despite the correction, XRP has continued to hold major levels, unlike Bitcoin, which has gone on to make new local lows. This suggests that XRP is performing differently from Bitcoin and could see a rally despite the Bitcoin price remaining low during this time.
Why XRP Price Holding Above $2.9 Is A Good Thing
So far, despite falling below $3, the XRP price has continued to hold above $2.9, which is a major macro level for the XRP price. As crypto analyst CasiTrades explains in an X post, the XRP price has continued to hold its larger macro consolidation pattern, even testing the key trend line at $2.91.
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Amid the market downtrend, altcoins like XRP have also continued to show bullish divergences. This suggests that the decline may only be short-lived, and a rally could be in the future. There is also the subject of weakening momentum underneath this level, but the crypto analyst explains that this could mean that the XRP price could see a relief bounce soon.
As long as the XRP price continues to trade inside of this current consolidation level, there is still the possibility that bulls can reclaim control of the altcoin. Since it is at the 0.618 Fibonacci level, the crypto analyst points out that this is the area of the ‘golden retrace’, a level that has been historically known to set the stage for a bullish continuation.
At this point, XRP could be looking to continue a textbook Elliot Wave continuation of Wave 3. Unlike Wave 2, Wave 3 is a bullish wave that tends to send digital asset prices to new local peaks, and sometimes, new all-time highs.
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For now, the major level that the XRP price needs to hold lies at $2.9. Casi explains that as long as this level holds and remains a support block for the altcoin, then it could signal the start of a new bullish trend that could push the altcoin to brand-new all-time highs.
The target for the continuation of the Wave 3 lies above $5.3, clearing the current all-time high of $3.8. This would also mean an over 80% increase from the current price.
Featured image from Dall.E, chart from TradingView.com
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