XRP Remains Above $2.05 as Analysts Debate Potential Bottom and Future Price Movements

• The recent fluctuations in XRP’s price have ignited debates regarding potential bullish recovery or impending bearish trends in the altcoin market.

• Following a significant drop of 22% in late March, XRP’s price has shown signs of stabilization around $2.05, suggesting a possible local bottom.

• A notable observation comes from popular analyst CasiTrades, who highlights that current bullish divergences on multiple timeframes may signal a turnaround.

XRP price stabilizes above $2.05 amid mixed market signals, sparking debates over its potential trajectory in April.

Analyzing Bullish Divergence in XRP’s Recent Performance

The relative strength index (RSI) for XRP demonstrates bullish divergence across several timeframes, a phenomenon that indicates potential upward momentum. According to analyst CasiTrades, bullish divergence occurs when the asset experiences lower price lows while the RSI forms higher lows, suggesting a diminishing downward trajectory.

“After reaching the 0.786 retracement level at $2.05, XRP showcases bullish divergences from the 15-minute chart up to the 4-hour chart,” the analyst stated. This phenomenon serves as an encouraging sign for both immediate rebounds and potential macro-level recovery.

“That’s the type of signal we want to see for both short-term bottoms and macro trends! – the bounce is sustaining thus far!” CasiTrades emphasized.

The resistance level at $2.25 remains crucial; a robust surge above this marker could effectively indicate a significant bullish breakout. “If we break above $2.25 with substantial momentum, it would invalidate the necessity for another support retest—a very bullish indication,” she added, pinpointing the demand zone between $2.00 and $2.01 as an essential support if the current level at $2.05 falters.

With a positive projection, CasiTrades anticipates an optimistic month for XRP, with short-term targets set between $2.70 and $3.70.

Assessment of the Local Bottom Scenario for XRP

Despite the uptick in XRP’s price following recent lows, concerns over a potential deeper correction loom over traders. Veteran trader Peter Brandt has pointed out the formation of a “textbook” head-and-shoulders pattern that could imply a price downturn to as low as $1.07.

This bearish pattern remains valid on the daily chart, with the neckline positioned at $1.90—a critical threshold that should be monitored. Should XRP maintain a position below this neckline, the price could descend to $1.50 and ultimately reach the pattern’s target of $1.07.

Brandt commented, “Below $1.90, I would not want to hold it. The H&S pattern projects to $1.07. Don’t shoot the messenger.”

The bearish outlook will only be invalidated if buyers manage to push the price above $3.00, presenting a substantial argument against the bearish thesis.

However, macroeconomic challenges, such as recent U.S. tariffs imposed on April 2, might add further volatility, potentially bringing XRP prices down to $1.31. Contrarily, analyst Dark Defender provided a more optimistic perspective, signaling that XRP may revisit the Fibonacci point at $2.04 before experiencing a rebound.

Dark Defender opines, “A crucial resistance level for XRP is $2.22, which needs to be breached for a sustained recovery towards Wave 5 targets at $8.”

His outlook suggests a dynamic month ahead, with expectations of price movements reaching between $5 to $8 as possible targets during the April-May period.

Conclusion

The current landscape for XRP reveals a mix of optimism and caution. While technical indicators show potential for bullish recovery, the presence of bearish patterns and macroeconomic factors necessitates vigilance among traders. The key takeaway is to monitor the crucial resistance levels and potential support zones to inform trading decisions effectively.