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XRP is exhibiting signs of vigor as it remains above essential support levels, yet the pathway to a breakthrough is still quite ambiguous. While energy stemming from the trendline offers hope, bearish divergences on longer timeframes are generating apprehension.
Bearish Divergence Indicates Market Wariness
CasiTrades, in a recent update, remarked that XRP has succeeded in displaying some momentum after rebounding off the black trendline emphasized the previous week. The adherence to this level is promising, but the market isn’t entirely out of peril. Its price continues to confront the pivotal $3 resistance, which remains the crucial obstacle to validate the onset of a new bullish trend. Until that threshold is surpassed, downside risks persist, with $2.79 (0.5 retracement) and $2.58 (0.618 retracement) recognized as the primary support areas.
Nevertheless, the movement from the trendline seems to be crafting a clear ABC corrective structure instead of a 5-wave impulsive surge. Price action has already dismissed the targets for the C-wave, and bearish divergence has been detected on the 4-hour chart. This amalgamation of elements does not correspond with the traits usually anticipated at the commencement of a genuine Wave 3 breakthrough.
On the 1-hour RSI, XRP is currently probing the lower support trendline, which CasiTrades is diligently observing for validation of the next movement. Looking forward, the critical level to monitor is $2.69. Ideally, XRP evades a new low beneath this area, as that would necessitate a reset of the wave count and alter the perspective.
However, a retest of $2.58 still holds validity and could function as a launchpad for a more extensive bullish advance. The overall scenario indicates XRP is at a crucial juncture: overcoming resistance could spark a long-anticipated rally, but failure at this point threatens to entirely invalidate the bullish framework.
XRP Supports Remain Robust As Momentum Grows
CasiTrades underscored that XRP’s support levels remain stable for the time being, and the market continues to await one of these significant areas to ignite the momentum necessary to surpass resistance. Without a definitive movement, the price risks stagnating in its existing range while probing lower levels.
Based on the assessment, a genuine Wave 3 breakout will be confirmed only when XRP successfully breaches the major resistance levels at $2.79, $3.00, and $3.25. These barriers must be breached without hesitation or repeated rejections; otherwise, the price movement would merely indicate weakness and the possibility of further downward testing.
CasiTrades additionally recommended closely monitoring Bitcoin’s movements for broader market alignment, as well as any indications of bullish divergence forming during the next pullback. Once that momentum surfaces, XRP could eventually have the arrangement to initiate the breakout that traders have been eagerly awaiting.
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