Analyst Predicts XRP Price Dip To $1.2 Despite 10% Rally

XRP has displayed a volatile price action in recent times. Analysts are predicting a potential dip in its price despite recent short-term rallies.

The 90-day pause in tariffs by US President Trump helped XRP rally by around 10%.

However, traders and investors may want to take note that technical analysis points to a deeper correction before any sustained rally can take place.

XRP’s Bearish Patterns Continue To Unfold

Currently, the trading pattern of XRP is signaling a bearish trend. This is particularly significant when a head-and-shoulder formation is taken into consideration.

It presents a left shoulder, head and right shoulder with neckline that forms around $1.90.

The neckline is essential to define the breakout direction. However, analysts suggest that if XRP price falls below this level, it may be the start of a bearish run.

If the price breaks down below $1.90, a measured price target based on the Head and Shoulders pattern tends to show that XRP can trade in the range $1.30 and $1.40.

For now, XRP is trading just slightly above the neckline at $2.01. This means that the pattern is not yet fully valid.

For the investors and traders, wait-and-watch is the best policy. Will XRP price action see a decisive breakout towards a bearish reversal or upwards to reclaim the $2.40 level and above.

The latter scenario would negate the Head and Shoulders formation, and an upward movement may resume for XRP price.

Key XRP Price Support Levels in Focus

Following the Elliott Wave structure, crypto analyst Casitrades points out that XRP has reacted as expected on Fibonacci retracement levels.

The price has recently approached the 0.618 Fibonacci level near $1.55, which will play an important role in the current wave pattern.

The analyst highlighted that $1.81 is a critical support zone. A drop below this level would confirm the possibility of a bearish wave.

Further, a pause near $1.71 is likely before XRP price hits the golden retracement zone at $1.55.

If the price continues its decline as expected, this would complete a corrective Wave 2, positioning XRP for a potential upward shift in the future.

In addition to Fibonacci levels, traders are observing the other support levels near $1.81 and $1.71.

A breach of these levels could signal further downside movement, with the $1.55 level being a key target.

Market Analysts Remain Cautious Despite Bullish Signs

Analysts continue to monitor the broader market for any signs of a reversal.

EGRAG pointed out a potential bullish cross on the XRP/BTC chart, which historically has led to significant rallies.

This cross occurred when the 55-week EMA and the 155-week MA intersected, a pattern last seen in May 2017, which preceded a massive rally for XRP.

Nevertheless, despite the bullish cross, analysts urge caution. EGRAG explained that XRP’s price may face short-term challenges before the potential for a broader rally materializes.

If XRP manages to hold support above key levels and BTC continues its bullish trend, XRP may eventually see a surge.

However, analysts remain focused on the crucial support areas near $1.81 and $1.55 to determine the overall market sentiment.

Despite the recent price action and market volatility, XRP has seen substantial gains over the past year.

The cryptocurrency has increased by more than 190% over the last 12 months, reflecting a strong long-term performance.

However, in the short term, a more cautious outlook is being adopted due to the bearish signals emerging from technical patterns and support levels.