XRP trades near $1.24 today after breaking below a key support zone at $1.27, with the former support now acting as resistance. Crypto analyst CasiTrades described this backtest as significan
XRP trades near $1.24 today after breaking below a key support zone at $1.27, with the former support now acting as resistance. Crypto analyst CasiTrades described this backtest as significant, stating that a sustained move below $1.27 could trigger the next leg down for the digital asset.
CasiTrades, who regularly shares technical insights with a broad audience, cautioned traders not to be misled by the current price backtest at $1.27. The analyst remarked that resistance at this level increases the likelihood of further downside.
After XRP dropped below $1.27, the previous support is being retested as resistance. If the backtest holds, a significant move towards the next major Fibonacci target at $1.10 is possible.
The technical shift has caught the attention of short-term traders and investors monitoring XRP’s next move. The rapid change in sentiment comes as the market digests recent volatility and tries to establish a direction.
According to CasiTrades, $1.10 represents a major level to watch on the downside. This price point aligns with XRP’s 0.786 Fibonacci retracement, which the analyst noted has not been tested since the recent rally. CasiTrades argued that untested support zones may become critical targets during market corrections.
Current price action shows XRP hovering near the 0.618 Fibonacci level at roughly $1.24. From this area, CasiTrades expects momentum to shift lower, with the $1.10 Fibonacci level serving as an important reference point before any recovery can take place.
Level Fibonacci Ratio Price Status Resistance – $1.27 Recently broken, now resistance Current Area 0.618 $1.24 Being tested Support 0.786 $1.10 Not yet testedMini dictionary: Fibonacci retracement – A technical analysis tool that identifies potential support and resistance levels based on mathematical ratios seen in recurring price patterns.
“This should be an impulse down, not consolidation. So much faster price action than we’ve been seeing,” CasiTrades observed, highlighting expectations for a quick move toward the next support.
CasiTrades links the current structure to Elliott Wave theory, suggesting that XRP’s ongoing decline is part of a larger corrective pattern known as Wave 2. The analyst previously stated that Wave 2 corrections can be deep and sharp, and that a short-term rally does not confirm a final bottom for the cryptocurrency.
In response to a community member’s query about the beginning of Wave 3, CasiTrades indicated that the latest downward movement is a necessary precursor to the anticipated bullish phase, but emphasized that confirmation depends on XRP reaching and holding key support at $1.10.
Price history in this context suggests investors could see swift moves as XRP tests important technical landmarks, with recovery attempts only likely after a significant drop.
The analyst expects the fall toward $1.10 will not be gradual. When asked about the possibility of prolonged consolidation, CasiTrades stated that the correction should happen rapidly, as opposed to a drawn-out sideways trend.
Community members have linked recent volatility to events such as exchange incidents and forced liquidations. Don Manning mentioned speculation about a Binance-related hack influencing recent movements, but there has been no verification of these claims, and CasiTrades has not commented on this specific scenario.
XRP remains above $1.20 at the time of writing, but technical focus across the market centers on potential tests of lower support. Market participants continue to watch the $1.10 level as a possible inflection point for the next phase of price action.
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