XRP has just dropped below $3, but the market may not be as bearish as it looks. The price fell into the 0.382 Fibonacci retracement level at $2.96, a significant support zone. The wick to $2.94, which matched the 0.618 subwave target, quickly reversed and reclaimed $2.96. This fast recovery is classic behavior often seen when a market finds its bottom.
According to market analyst Casi Trades, the current setup could open the door for XRP to stabilize and possibly aim for higher targets, with levels like $4.80 already on the radar.
XRP Holds Strong At $2.96 Support
XRP’s latest price action delivered exactly what technical analysts were waiting for. Adding even more weight to the case for a bottom is the Relative Strength Index (RSI). The RSI printed bullish divergence on both the 15-minute and the 1-hour charts.
While prices were falling, the RSI showed higher lows, signaling momentum was shifting in favor of buyers. Combined with the clear 5-wave downward move on the chart, Casi Trades believes this confirms that XRP has completed its correction phase.
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The analyst explained that the drop into $2.96, followed by an immediate bounce, shows that the market “was hunting for a bottom, and XRP delivered.” The combination of Fibonacci levels, divergence signals, and clean wave structure makes this support zone one of the most important in the current cycle.
Bullish Outlook And Upside Targets
Now that XRP has hit and held the $2.96 support, traders focus on the next phase. Casi Trades noted that XRP may linger around this level or retest it again, but its holding is already a positive sign.
The market analyst expects large-cap cryptocurrencies, including XRP, to lead the next wave of gains. With support confirmed, attention is now shifting to upside targets. The most critical one mentioned is $4.80, but the analyst believes the momentum could carry XRP even higher if conditions remain favorable.
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This bullish outlook is fueled not just by XRP’s chart but also by broader market conditions. Large caps tend to move together when sentiment improves, and XRP holding its ground at $2.96 is a signal of strength. “From these support lows across the market, I expect things to turn exciting and bullish,” Casi Trades commented.
If the impulsive upside resumes, XRP’s recovery from this support zone could mark the beginning of a strong upward leg.
For now, all eyes remain on the $2.96 level. As long as XRP holds above it, the case for a bullish rally stays strong. The market setup points to higher prices, whether it takes off immediately or after a brief consolidation. With the potential for a run toward $4.80 and beyond, XRP’s sharp drop may have just set the stage for its next big move.
Featured image from Dall.E, chart from TradingView.com
