The idea from the analyst is that the latest strength may be more exhaustion. There have been bullish candlesticks on the hourly timeframes over the past few days, but according to the analyst, this is exactly where traders get caught. Despite the green candlestick, the XRP price is yet to make a new high above $1.4. Instead, the five-wave move mentioned above is starting to meet resistance.
A fast rebound can feel like the start of a reversal, especially when price snaps back into the same zone that recently rejected it. However, without a new high, nothing has changed. This is still just noise inside the same larger pattern.
The Price Levels That Matter MostThe basis of this analysis is a warning that the XRP price is still going to reverse into another extended crash that eventually brings it below $1. According to CasiTrades, XRP is still trading right between support and resistance, and multiple degrees are aligning to the downside.
The projection allows for a short relief bounce after touching $1.13 before another move into the macro 0.786 support around $1.08. The final leg in the bearish sequence is a projected break below $1 and into the 0.854 support zone around $0.87. This move would be the end of a larger corrective impulse wave 2.
