As Ripple (XRP) continues its downward trend, cryptocurrency market analyst CasiTrades has raised the possibility of further declines. The analysis suggests that with XRP breaking below $1.27, presented as a key Fibonacci support level, the price correction could extend to $1.10 and even $0.87. However, CasiTrades also stated that this decline does not mean the end of the long-term bullish scenario.

Break Below $1.27... Next Watch Level Is $1.10

CasiTrades claimed on his X account that XRP broke down through the $1.27 area, which corresponds to the 0.618 Fibonacci retracement level, and is facing strong selling pressure.

He explained that XRP is showing a temporary support movement around $1.20. This price zone previously acted as a major resistance level, making it a notable position for whether it turns into support.

However, the next downside target CasiTrades presented is $1.10, slightly above the Fibonacci retracement price of $1.0937. The analysis suggests that if the support near $1.20 fails to hold, the $1.10 area could become the next level to watch.

He did not rule out the possibility of further declines either. CasiTrades mentioned $0.87 as a price level that should still be considered, though he did not definitively forecast a drop to $0.87 — rather, he presented it as a lower price to examine if the correction deepens.

A 'Typical W2 Correction' in Elliott Wave Terms... W3 Upside Potential Remains Valid

A notable point in this analysis is the relationship between the second corrective wave (W2) and the third impulse wave (W3), based on Elliott Wave theory. CasiTrades interpreted the current sharp price decline as a typical W2 correction process.

In Elliott Wave theory, W2 is the corrective phase that appears after the first impulse wave; even if the correction deepens, the subsequent possibility of a W3 rally does not necessarily disappear. He argued that this kind of correction can serve as a process of flushing out leveraged positions and testing market participants' conviction.

Watershed for the Wave Count: $1.10 and $0.98

CasiTrades specifically distinguished $1.10 and $0.98 as key price levels for wave analysis.

According to his explanation, if XRP holds above $1.10, the wave count for a new trend remains valid. Conversely, if a new low forms below $0.98, the existing wave count would need to be reset, and the timing of the major turning point for W3 could also be delayed.

This means that $1.10 is an important support zone in the current analysis, while $0.98 serves as the criterion for judging whether the wave structure needs to be re-examined.

CasiTrades' Position and Market Response Direction

CasiTrades also disclosed his long positions. He stated that he holds a long position at the $0.94 price level and explained that he also bought several months ago in the long-term Fibonacci support zone at $1.10.

He maintained his position that this decline has not invalidated his existing wave count. He also explained that expecting an immediate rally after only a brief correction, following the breakout of a nine-month resistance, would be an overly simplistic approach. CasiTrades emphasized that rather than being swayed by market selling pressure, one should observe the movements of key Fibonacci support zones.

Price Levels to Confirm Going Forward

However, his analysis is a technical outlook utilizing Elliott Waves and Fibonacci retracements. It does not mean that a W3 rally will necessarily occur after the W2 correction. There is also no guarantee that the presented support levels will hold in actual trading.

In the future XRP price movement, whether $1.20 holds as support and the behavior around $1.10 are the primary points to watch. If the decline deepens, whether XRP breaks below $0.98 could become an important criterion for re-examining the existing bullish scenario.

CasiTrades judges that the possibility of a W3 rally remains, despite the current correction. However, whether the price ranges and wave outlook he presented will materialize in the actual market must be confirmed through further price movements.

[Technical analysis includes the analyst's subjective judgment and may differ from actual price movements. This article was written with partial AI assistance.]