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XRP News: Potential Fall to $1.55 Before a Sharp Rise
In the latest XRP news, the cryptocurrency has recently moved above a key descending trendline that had halted its rallies since February. Despite this breakout, market analyst CasiTrades suggests that the shift may not be as positive as it seems, hinting at potential pitfalls ahead.
The Binance four-hour chart shows XRP hovering around $2.32, just above the wedge’s upper boundary. However, it is precariously close to losing these gains if market leverage begins to reverse. CasiTrades explains this situation using Elliott wave theory, noting that the rise from January to June marked a completion of wave (1) at about $2.70, followed by a dip to $2.02, forming wave (2).
Emerging Trends and Warning Signs
As XRP approaches the apex of its macro consolidation, it finds itself in a delicate position with funding rates quietly increasing—a combination CasiTrades deems risky. Currently, the eight-hour funding rates have hit 0.01%. A rise to 0.02% without a corresponding price increase could trigger algorithms to target liquidity below $2.25.
“If we see funding rates climb to 0.02% or higher without a substantial price movement, it could lead to a significant downward liquidity sweep,” CasiTrades warned. Such a scenario could push XRP down past its recent breakout level, potentially reaching lows of $2.01, $1.90, and even $1.55.
Potential for a Strong Rebound
Despite the potential for a drop, such a move could set the stage for a robust wave 3 surge. The relative strength index (RSI) on the chart shows a bearish divergence, with the RSI peaking lower as the price edges higher—often a precursor to increased volatility.
However, if XRP manages to maintain its position above the trendline and the $2.25 support level, it could use this base as a launching pad for further gains, targeting $2.69, near $3.04, and potentially reaching the $3.77 mark outlined by the wave (3) projection. This projection aligns with the 1.618 external Fibonacci extension, with prospects of rising above $4.40 later in the summer.
The Road Ahead
With volatility almost guaranteed, the next movements of XRP will likely define its trajectory for the rest of the summer. Traders are presented with a binary choice: either a liquidity-driven dip to $1.55 that could propel a strong upward movement or a consolidation above $2.25 that could lead to significant gains. As of now, XRP is trading at $2.25.
For those interested in more detailed analysis and updates, you can find more about crypto on [Binance](https://www.binance.com/). Additionally, for further readings on cryptocurrency trends, visit our dedicated [crypto section](https://financier.news/category/crypto/).
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