The recent surge in XRP’s price has captured the attention of traders, but seasoned analyst CasiTrades advises caution, suggesting that the cryptocurrency may experience a correction before potentially reaching a price range of $8 to $13. In a recent update, the analyst emphasized that while XRP has shown impressive gains, especially after breaking above $1 for the first time in three years, investors should wait for an ideal entry point as the market consolidates.

XRP’s Surge and Potential Correction

XRP recently surged to $1.26 over the weekend, prompting significant interest from traders. However, the token has lost some momentum, with its price now hovering around $1.10, reflecting a 3.72% decline over the past 24 hours. This price pullback has raised concerns about whether XRP might face a deeper retracement before continuing its upward trajectory. According to CasiTrades, this correction is expected, and chasing the current rally may not be wise. The analyst recommends waiting for key support levels to be tested before making any major moves.

Favorable Entry Points for Investors

CasiTrades has identified two crucial Fibonacci retracement levels where XRP’s price could find support during the expected pullback. The first key support level is at the 0.382 Fibonacci level, corresponding to a price of $0.98. If the price retraces further, the second target is at the 0.5 Fibonacci level, or $0.88. These levels align with the ABC correction pattern, which typically follows major price rallies and serves as an opportunity for traders to re-enter the market at more favorable prices.

According to the analyst, these levels represent prime entry points for investors looking to capitalize on XRP’s longer-term bullish potential. By testing these support zones, XRP can solidify its bullish structure and position itself for the next leg up.

RSI Momentum and Divergences

CasiTrades also noted the Relative Strength Index (RSI) on XRP’s daily chart, which shows no bearish divergence. This indicates that XRP still maintains strong momentum. However, on shorter timeframes, bearish divergence is starting to appear, suggesting that a short-term correction is likely before XRP resumes its upward movement. Despite this, the overall momentum remains bullish, and the analyst remains confident that XRP’s price will continue to rise in the long run.

Long-Term Outlook: $8 to $13 Price Target

While the analyst is expecting a pullback in the short term, the long-term outlook for XRP remains highly bullish. CasiTrades predicts that once the market confirms support at the identified levels, XRP could see significant price gains, with a target range between $8 and $13. The breakout above the $1 mark has reinvigorated optimism in the cryptocurrency, and if the market conditions remain favorable, XRP’s price could continue to climb towards these higher price targets.

XRP’s Momentum and Market Sentiment

The bullish outlook for XRP has also been supported by notable figures in the crypto community. Even seasoned analysts like Peter Brandt have turned optimistic about the token. Brandt recently remarked that with XRP clearing its 2023 high, the next major resistance is the 2021 high of $1.96. Once this level is surpassed, XRP could be on its way to a historic run that may take it to new all-time highs. However, Brandt refrained from speculating on exactly how high XRP could go in this potential rally.

Conclusion

Despite the current pullback, XRP’s longer-term potential remains strong, with seasoned analysts predicting a future price range of $8 to $13. Traders are advised to watch for key support levels to be tested before re-entering the market. While short-term corrections are expected, XRP’s long-term bullish momentum remains intact, and if market conditions align, the cryptocurrency could be set for a major rally in the coming months.