XRP reached approx technically decisive leveland the next wave of price action is expected to clarify whether the market is beginning a recovery or bracing for another structural collapse. The recent move confirms that key support has done its job, but the upside path comes with stringent conditions that will determine whether this support the rebound is indefinite or simply a break before deeper declines.

XRP’s rebound is real, but it’s still a testing move

Yesterday, the well-known cryptocurrency analyst CasiTrades took up X, pointing that XRP’s weekend decline stopped right at the 0.5 macro retracement near $2.03, a level that is currently acting as confirmed structural support. The reaction to this zone was immediate, confirming it as busy demand and not a random price equalization. Dynamic indicators as well bullish divergence printed at such a low level, which reinforces the view that the downward pressure is weakening in the low term.

From a wave structure perspective, CasiTrades interprets this move as an early stage of the second wave rebound. The accompanying chart suggests that price may trade higher towards the $2.24-$2.26 range, an area defined by the overlap of Fibonacci retracements and prior resistance. Reaching this zone would end the expected corrective move, however CasiTrades emphasizes that such a rally is still within a broader pullback rather than confirming a bullish continuation.

This distinction is crucial because corrective actions often appear constructive before they fail. If XRP’s development overlaps and lacks impulsivity, this will provide grounds for rejection at resistance and continuation of a broader repair cycle.

The catch that determines the bigger picture

According to CasiTrades, the key level that changes everything is $2.41. A decisive break above this level follows successful retest support, would completely invalidate the downside scenario. Such a move this would signal that the rebound is no longer corrective and that XRP is entering a stronger impulsive phase.

However, failure at $2.41including a potential double top, would still be consistent with a wave 2 corrective structure. In this case, XRP will likely fall into a third wave of decline. Although smaller sub-waves may not develop perfectly, CasiTrades emphasizes that the larger sub-wave target remains unchanged, i.e. macro support nearby The dominant downside target is $1.65.

Risk management remains central to this setup. CasiTrades identifies $2.03 as the invalidation point of the bounce thesis, making it a logical level for protective stops. As long as this support holds, the market is in watch mode.

Ultimately, the next wave of XRP indicates the direction the price will continue to move, but only if investors follow the attached condition. How CasiTrades frames thisthe internal structure of the move will reveal whether it is a fleeting reset or the beginning of something materially stronger.

Featured image created with Dall.E, chart from Tradingview.com