XRP Faces Potential Drop to $1.55 Before Major Surge, Analyst States

XRP has recently moved above a descending trendline, which had previously restricted its price action since February. Current positioning in the derivatives market indicates potential volatility ahead, as noted by market technician CasiTrades.

XRP Outlook

XRP is trading around $2.32, slightly above the wedge’s upper boundary.
Technical analysis suggests a completed wave (1) at approximately $2.70 and a correction to $2.02 for wave (2).
CasiTrades indicates a new upward movement could initiate wave (3), but funding dynamics pose risks.
Funding rates have hit 0.01% over eight hours; if they reach 0.02% without significant price increases, liquidity below $2.25 may be targeted.
A drop below $2.25 could expose levels of $2.01, $1.90, and potentially $1.55.
A sharp decline could set the stage for a subsequent breakout towards $3.77 based on Fibonacci projections.
The RSI shows bearish divergence despite the price increase, indicating possible upcoming volatility.
Traders face two scenarios: a liquidity sweep to the downside or consolidation above $2.25 leading to higher targets.

XRP is currently priced at $2.25.