XRP is showing signs of a potential bullish turnaround after recently hitting a Golden Pocket. Analysts say this Golden Pocket could trigger a strong relief bounce in the XRP price, potentially propelling it toward $2.50. At the same time, they predict that a price drop to new lows remains possible if the market does not unfold as expected.
In an X post on Monday, crypto market analyst CasiTrades announced that XRP has hit a Golden Pocket, bringing attention to an upcoming W4 relief bounce that could fuel a rally to $2.5. Sharing a detailed Elliot Wave chart, she noted that XRP experienced an expected flush into the Golden Pocket around the 0.618 Fibonacci level near $1.93. At the same time, the cryptocurrency aligned well with the 1.618 Extension for Wave 3, which CasiTrades describes as a textbook move.
XRP Golden Pocket Signals Rally To $2.5
According to the analyst, this sets the stage for a full Wave 4 relief to begin. She pointed out that the first resistance to watch is the 0.382 Fibonacci Retracement level at $1.78, which also coincides with a previous support breakdown and could serve as a backtest of resistance.
Related Reading: XRP To $11, And Then $70: The Next Impulse Wave To Watch Out For
CasiTrades noted that XRP experienced a very shallow Wave 2, only retracing to the 0.382 Fibonacci level in the Elliott Wave chart structure. She explained that modest Wave 2 corrections often signal a deeper Wave 4 retracement, indicating the XRP price could experience a stronger pullback during the next corrective phase before potentially resuming its upward trend.
Based on this pattern, the analyst stated that Wave 4 could push XRP higher, potentially reaching the $1.93 level from its current price of around $1.60. She added that the cryptocurrency could climb further to $2.03, which corresponds to the macro 0.5 retracement level. CasiTrades emphasized that XRP would need to reclaim the $2.03 level and hold it as support before a sustained upward move could begin. This highlights $2.03 as a key turning point that could trigger XRP’s next breakout phase above $2.50.
The analyst further explained that holding $2.03 as support would eliminate the need for another corrective wave down toward $1.55 or lower. She added that maintaining this level could also prevent Wave 5 from failing.
What Happens If Support Fails
In her Elliott Wave analysis, CasiTrades admitted that “nothing is confirmed yet,” keeping her bullish outlook for XRP speculative. She noted that XRP’s recent drop to new lows created a Bullish Divergence, but the market could still revisit lows.
Related Reading
CasiTrades said that XRP’s bullish scenario will only be confirmed once it breaks through the key resistance level. The accompanying chart highlights the potential downside of support failing, projecting a roughly 8% decline from $1.60 to $1.47.
Featured image from Getty Images, chart from Tradingview.com
