XRP Hits $2.24, Analyst Predicts 40% Drop Before New Highs

XRP has reached a significant point in its price movement, touching the 0.382 Fibonacci retracement level near $2.24. This level is considered the top of an ABC pattern, as noted by crypto analyst Casie. The RSI indicator has shown bearish signals at this point, suggesting a potential short-term reversal and a deeper correction in the near future.

Casie has identified two possible retracement zones at $1.90 and $1.55. The $1.90 level is seen as a critical backtest area, while $1.55 is considered the golden .618 Fib retrace and a potential Wave 2 corrective low according to Elliott Wave Theory. These levels are marked as major supports that could prompt an eventual pivot toward higher highs. Casie maintains that the overall bullish structure remains intact, with the short-term dip needed for confirmation before any renewed upward push.

In her follow-up commentary, Casie reiterated her bullish stance, predicting a breakout to new highs in April. She mentioned that any wave 3 extension target is valid, including $6.50, $9.50, $13, and $26. This aligns with her Elliott Wave Theory approach, where the current corrective leg is seen as a precursor to a potentially powerful third wave extension. Her chart from mid-March showed XRP holding above $2.26, with higher upside targets at $2.70 and $3.05 once the market confirms another upward wave.

Casie further mentioned that XRP needs to break above $3.40 to confirm a new trend. Until that happens, the next big move remains uncertain. The RSI divergence visible on multiple timeframes has added to short-term bearish concerns, but the medium- to long-term picture still indicates scope for a new rally once the price revisits and confirms support.

Currently, all eyes are on whether XRP’s pullback finds support at one of Casie’s highlighted Fibonacci levels. The price briefly breached $2.20 but has since shown signs of faltering momentum, leaving traders to watch if $1.90 or $1.55 will emerge as a pivotal bounce zone. If XRP stabilizes at or above those areas, sentiment could shift toward fresh highs, especially if the broader market cooperates.

Casie’s scenario of a wave 3 extension toward targets above $6 remains on the table, but the immediate question is how the asset handles this retracement phase. The structure still appears bullish overall, yet the coming sessions will be critical in determining whether XRP’s current pullback lays the foundation for a sustained next leg higher.