After several weeks of fluctuating price patterns, XRP's daily candlestick chart is now indicating a potential significant movement ahead. While the token remains above crucial support levels around $2.13, technical indicators suggest that momentum may be diminishing.
An analysis shared by crypto analyst CasiTrades on the social media platform X reveals that XRP’s Relative Strength Index (RSI) has recently fallen below a significant trendline that had been tracking higher lows since early April. This breakdown marks a notable shift in the short-term momentum for XRP, indicating a weakening of internal market strength despite the price remaining stable above the 0.5 Fibonacci level at $2.13.
The RSI had been developing a tightening wedge pattern for several weeks, similar to the compressing price action observed at the peak of a symmetrical triangle on the daily chart. Such an RSI trendline break often suggests an upcoming expansion in volatility, and according to the analyst, this release might result in a sharp decline toward major support levels before any potential rebound.
Currently, XRP is facing a critical testing phase that could see its price dip lower before initiating a significant rally. CasiTrades has identified several demand zones where buyers have previously shown interest, including levels at $2.01 (aligned with the 1.236 Fibonacci extension), $1.90, and $1.55 (corresponding to the 0.618 retracement from recent rallies). These zones possess sufficient liquidity, and as long as XRP does not break and sustain a level above $3, these support areas will remain relevant.
If XRP reaches one of these support levels and demonstrates a sharp V-shaped recovery, it could indicate that the market has found its pivot point. Conversely, if XRP approaches these levels and either stalls or bounces back prematurely, it may trigger a deeper low before a genuine reversal occurs. Regardless, the recent RSI breakdown has shifted short-term risk toward the downside until the price can confirm a significant reclaim above $2.50 and $3. As of now, XRP is trading at $2.11, reflecting a 2% decrease in the last 24 hours.
