XRP Drops 22% Then Rebounds 9% Amid Bullish Signals

XRP, a popular altcoin, experienced a significant price drop of 22% between March 19 and March 31, reaching a local bottom at $2.02. Following this decline, the price rebounded by 9% to $2.20 before retracing to its current levels. The question on many investors' minds is whether this marks the end of the downturn or if further declines are imminent.

Analyst CasiTrades has identified bullish divergence signals on multiple timeframes for XRP. Bullish divergence occurs when an asset's price reaches lower lows while the relative strength index (RSI) produces higher lows, indicating that downward momentum is weakening. CasiTrades noted that these signals are present from the 15-minute chart up to the 4-hour chart, suggesting both short-term bounces and potential macro recovery. The analyst highlighted that $2.25 is a key resistance level to watch, as a strong break above this level would signal a convincing bullish breakout. CasiTrades also projected a bullish month for XRP in April, with short-term targets of $2.70 and $3.80.

Despite the recent recovery, veteran trader Peter Brandt cautioned that a deeper correction could still occur. Brandt identified a "textbook" head-and-shoulders pattern (H&S) on the daily chart, which could drive the XRP price as low as $1.07 if the pattern is completed with a break and close below the neckline at $1.90. Brandt warned that if the price stays below this level, it could plummet to $1.50 and then to the pattern’s target of $1.07. However, this bearish pattern would be invalidated if buyers push and maintain the price above $3.00. Additionally, macroeconomic headwinds from US tariffs on April 2 could further impact the XRP price, potentially pulling it toward $1.31.

Not all analysts share Brandt's pessimistic outlook. Dark Defender, for instance, predicted that XRP price is likely to revisit the last Fibonacci level at $2.04 before bouncing back. According to the analyst, a key resistance level for XRP is $2.22, which must be broken to ensure a sustained recovery toward the Wave 5 target at $8. Dark Defender expressed optimism for the April-May period, with targets for Wave 5 standing at $5-8 levels.