XRP was one of the top crypto assets that suffered massive declines at the beginning of this week. Its attempt to reach $3 on Thursday was quickly thwarted by the bears.

As the token trades at $2.82, a perfect Fibonacci bounce is now teasing a new uptrend.

XRPs Flawless Fibonacci Play

XRP delivered a textbook technical move this week, as it perfectly backtested the critical $2.79 support level. According to crypto analyst CasiTrades, this is a key zone where bullish momentum was expected to emerge. In a recent post, she highlighted that the macro 0.5 Fibonacci retracement continues to hold as a major floor during the ongoing correction.

However, the markets path remains undecided. To invalidate the need for a deeper pullback, XRP must break and climb above $2.97 to align itself with the 0.854 retracement and the bottom of Wave 1. A stronger confirmation of a new uptrend would come only if the crypto asset flips the macro 0.382 level at $3 into solid support.

But failure to reclaim these levels could invite another retest of $2.79 or even a deeper slide toward $2.58, the 0.618 retracement. She added,

We need to be watching these levels closely on the RSI for any signs of exhaustion!

CasiTrades had recently weighed in on XRP experiencing high volatility after a dramatic wick down to a double bottom near $2.70, which marked the end of its latest consolidation phase. Sharp moves like this are commonly interpreted as the first indications of a larger trend reversal, assuming crucial support remains firm.

The analyst observed that the sudden dip was likely driven by over-leveraged traders rather than a fundamental shift in market sentiment. Following the sell-off, XRP quickly reclaimed the macro 0.5 Fibonacci retracement at $2.79, where candles have consistently held strong.

Channel Setup Predicts Liftoff

A bold new analysis on XRP points to a familiar yet powerful setup that has historically marked the beginning of explosive rallies. According to another analyst, XRP often forms an ascending channel during the final phase of each cycle, a pattern that represents quiet accumulation before liftoff.

While research shows such channels break down 57% of the time, XRPs history tells a different story after having defied the odds in both 2017 and 2021. The Bull Market Support Band (BMSB) has come into play as a safeguard, and the analyst explained that as long as weekly closes remain above it, the bullish structure stays intact.

In past cycles, XRP broke the top of its channel, retested briefly, and then launched to new all-time highs, eventually delivering gains of 350% in 2017 and 110% in 2021. If this pattern repeats, projections point to a whopping upside of $15-$33 by late 2025.