Top cryptocurrency analyst CasiTrades recently conducted a comprehensive technical analysis on the XRP market, revealing the potential for a short-term price increase. Over the past week, XRP prices have fallen by more than 7% amidst a broader crypto market correction. However, CasiTrades suggests that if a specific support level continues to hold, there could be an opportunity for a swift price recovery.
In a post dated May 30, CasiTrades highlighted an XRP trade setup that could offer an attractive short-term trading opportunity. The analyst pointed out that XRP’s drop to its 0.118 Fibonacci retracement level at $2.196 has plunged it into a familiar price range for short-term trades.
According to CasiTrades, the optimum entry point for many investors was $2.20, with a price target of $2.253 at the 0.236 Fibonacci retracement level serving as the take-profit zone. This scalp setup operates on the high chance of achieving quick price relief. Hence, a price jump to $2.253 doesn’t necessarily signal an upcoming price reversal. Nevertheless, with strong bullish momentum, XRP could potentially exceed $2.253 with future targets at $2.333, $2.395, and $2.456.
Crucially, CasiTrades has set the stop-loss for this trade setup at $2.13. The analyst emphasizes that it is critical for market bulls to prevent a decisive price drop below this level, as it could nullify the entire scalp trade setup. If this unfavorable scenario occurs, the altcoin could face further price decline, with the next major support around $1.77.
As of press time, XRP is trading at $2.14, having declined by 4.86% in the last 24 hours and 3.01% over the past month. Notably, the asset’s daily trading volume has risen by 57.32%, indicating increased selling pressure amidst the current price crash. XRP’s position below its 200-day moving average on the daily trading chart implies a strong possibility for the altcoin to continue its downward trend, potentially invalidating CasiTrades’ price relief prediction.
However, the token’s Relative Strength Index currently stands at 36.47 and is heading towards the oversold territory, which might trigger a price rebound to around $2.30. With a market cap of $125.04 billion, XRP remains the fourth-largest cryptocurrency. Market analyst Crypto V sees potential for the altcoin, projecting a market cap of $790 billion by the end of 2025.
