XRP Looks Ready for Its Final Drop

CasiTrades, a notable crypto market analyst, has presented a detailed chart and commentary indicating that XRP may be nearing the conclusion of its corrective structure, potentially preceding a significant bullish reversal. Her recent analysis points out that XRP has experienced a rejection at the Wave 4 resistance level, situated near $2.68, which suggests an emerging downside momentum.

The provided chart illustrates an Elliott Wave framework, with XRP trading around $2.47 at the time of the analysis. Based on this structure, the analyst posits that XRP's recent decline has completed its fourth corrective wave and is now forming the fifth wave of the sequence. This Wave 4 rejection aligns with Fibonacci retracement levels between $2.65 and $2.69, areas historically recognized as transition points from retracement to continuation within corrective patterns.

Key Support Levels to Watch

CasiTrades has identified $2.42, $2.03, and $1.65 as crucial support levels for XRP to monitor as it enters its next phase. She indicated that a break below $2.42 would signal a bearish continuation, targeting the lower levels of $2.03 and $1.65.

The chart demonstrates a correlation between these support levels and significant Fibonacci retracement zones. Notably, the 0.618 extension near $1.65 is projected to coincide with the termination point of Wave 5. This structural alignment suggests that XRP's current decline could extend further before establishing a stable bottom.

The analyst highlighted that both $2.03 and $1.65 represent strong technical confluence points that could attract buying interest once the downward movement exhausts itself. The descent to these levels would signify the completion of the corrective cycle, potentially paving the way for a substantial trend reversal in the coming months.

Reversal Indicators Amid RSI Weakness

Further supporting the bearish outlook, the Relative Strength Index (RSI) on the four-hour chart has started to form a new low, indicating increasing selling pressure. CasiTrades explained that the RSI is "making a new low, starting to confirm that Wave 5 down is underway."

However, she also noted that as the price approaches the final support area, she will be observing the RSI for signs of bullish divergence. This divergence would serve as an early indicator of weakening selling momentum and a potential bottom formation. The RSI is currently positioned near the midline, suggesting that additional declines may occur before a reversal takes place.

Preparing for a Shift in Momentum

While October may conclude on a subdued note, CasiTrades anticipates that "November could kick off the next major wave." The analysis suggests that following the completion of the corrective Wave 5, XRP could initiate a strong impulsive rally, aligning with the subsequent wave in the broader Elliott Wave cycle.