On Tuesday, February 3, XRP is trading at $1.62, as it has seen an increase of 1.81% in a day. The trading volume has dropped by 36.45% to $3.39 billion. The price has still seen a decline of 14.29% over the last week. The recent price movement has placed the token in an important technical area that may determine the short-term trend for the asset.
Source: CoinMarketCap
XRP Approaches Critical Fibonacci Zone
Crypto analyst CasiTrades highlighted on X that the price of XRP has now reached the 0.618 Fibonacci Golden Pocket and has also reached the 1.618 Wave 3 Extension. The combination of these two events has created a textbook Elliott Wave pattern. The possible Wave 4 relief has now become the main focus.
The analyst stated that resistance has been found near the 0.382 retracement level priced at $1.78. This level is located near the previous support level that has since broken out. The analyst stated that Wave 2 has only retracted to the 0.382 level.
The analyst also said that Wave 4 could potentially reach $1.93. There could also be a possibility of reaching $2.03, which is the macro 0.5 retracement. A reclaim of $2.03 could potentially reduce the chances of seeing a bearish continuation wave reaching $1.55.
Source: X
The analyst confirmed that the token has printed a bullish divergence in its recent low. However, the analyst also said that resistance needs to break before a trend reversal could potentially be considered reliable. Therefore, the risk of seeing XRP fall remains active.
Moreover, another analyst, CryptoWZRD, mentioned that XRP concluded its daily candle in bullish territory. However, the analyst said that a decline in Bitcoin dominance (BTC.D) for the XRPBTC pair could potentially see more momentum. The analyst said that the next major resistance could potentially be $2.00.
Also Read: Lido DAO (LDO) Struggles Below Midline After 17.63% Weekly Drop
The analyst further added that the price above $1.64 will sustain the upward pressure. The improvement in the XRPBTC ratio will also add more bullish sentiment. The momentum will, however, depend on the market risk appetite.
,
Source: X
RSI and MACD Highlight Mixed Market Signals
The Relative Strength Index (RSI) is currently at 29.22 for the daily chart, with the signal line at 36.94. The RSI is in the oversold territory. This signal is in line with the bullish divergence recorded in the market.
The Moving Average Convergence Divergence (MACD) is at -0.1029, with the signal line at -0.0689. The histogram is currently at -0.0339, showing that the momentum is still bearish. No bullish crossover has been observed.
Source: TradingView
XRP is showing initial indications of a potential reversal after hitting significant Fibonacci levels. Analysts have emphasized that the price must break above $1.78–$2.03 to confirm the trend. The market direction will now depend on the price action of XRP above resistance levels.
Also Read: XRP Weekly Pullback Intensifies, Resistance Zone at $2.20–$2.30 Remains Crucial
