As XRP Falls, Expert Shares Positive Perspective on Decline if $1.94 Holds

XRP still maintains its bullish momentum despite the recent drop, according to market analyst Casi.

Notably, XRP recently dropped to retest the lower end of the $2 price level, testing the patience of traders. Despite this setback, analyst Casi Trades has maintained her optimism, suggesting that the altcoin can sustain the bullish momentum if a major support level holds.

Positive Perspective Amid Crash

Casi’s initial analysis came up on Dec. 5. However, XRP has collapsed 9% since then, currently trading for $2.2. The bearish pressure comes on the back of a broader downturn, which recently liquidated nearly 584,000 traders across the market.

Interestingly, the crash also coincides with Ripple CEO Brad Garlinghouse’s interview at a 60 Minutes segment. As XRP retests the lower end of the $2 level, Casi updated her analysis to address the current downturn. 

☀️Here’s some positive perspective on this correction: A .382 retrace still aligns our extension targets perfectly with #XRP‘s previous ATH—markets love this kind of symmetry!
Unless $1.94 is broken, this target holds! https://t.co/VxDAq7Pyy5

— CasiTrades 🔥 (@CasiTrades) December 10, 2024

She noted that a 0.382 retracement aligns XRP’s Fibonacci extension targets perfectly with its ATH at $3.50. However, she stressed the importance of $1.94 as a support level. If this level holds, the bullish targets remain achievable.

XRP’s crash pushed it to a bottom of $1.96 yesterday amid a 14% intraday loss. This marked the first time XRP collapsed below $2 since it reclaimed the level on Dec. 2. Despite this, XRP has since recovered. Should another drop ensue, the bears must maintain $1.94.

Initial Analysis and Additional Context

For context, Casi had initially outlined two scenarios for XRP’s price trajectory when the price traded for $2.4. The first scenario involves an ABCDE correction pattern. If this correction finds support at the 0.236 Fibonacci retracement level ($2.31), the next bullish wave could extend to $3.74. 

The analyst pointed out that this price mark would correspond to a 0.618 Fibonacci extension and potentially mark a clean break above XRP’s all-time high (ATH). Such price movement would set the stage for a test of support at higher levels.

Meanwhile, the second scenario considers a deeper correction following an ABC pattern. Here, the completion of wave C at the 0.382 retracement ($1.94–$2.04) could still create the pathway for a recovery. 

The rebound would target XRP’s ATH of $3.50. Breaking this resistance and confirming it as support would likely re-ignite the bullish momentum. Notably, the range between $3.50 and $3.74 remains a critical pivot zone, where the market will define future trends.

XRP 1H Chart

Interestingly, the 1-hour chart from Casi confirms these technical commentaries. According to data, recent XRP price action formed a descending structure, signaling that the ongoing correction could see an end soon. 

Major levels of support include the 0.236 retracement at $2.31 and the broader range near the 0.382 level between $1.94 and $2.04. Further, the RSI indicator shows bullish divergence, as price continues to dip while RSI rises, hinting at buying pressure returning.