A crypto trader and analyst asserts that XRPs bullish momentum is still intact despite a recent correction. The analyst noted that XRPs response to the $2.75 level was crucial, and the asset has successfully reclaimed the $3 resistance level.
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Terence Zimwara 
Key Support and Resistance Levels
According to Casitrades, an expert crypto trader and analyst, XRPs bullish momentum remains intact despite a recent correction. In a post on X, Casitrades stated that the digital assets response to the $2.75 level was a major test and it has since responded well by reclaiming the resistance level of $3. The analyst suggests that if XRP continues to hold above $3, it could regain the bullish momentum that led to a new all-time high in July.
Market data reveals that XRP experienced a significant correction, tumbling from a high of $3.32 on July 28 to a low of $2.72 by August 2. This sharp decline ignited fears among investors that the bullish momentum had been exhausted and that bears were taking control. However, the digital asset has since clawed its way back, briefly touching $3.10 on August 5 before stabilizing and consolidating around the $3.05 level.
This recent volatility follows a similar pattern from late July, when XRP had previously dropped below the key $3 mark on July 24 before a subsequent rebound. At the time, experts like Casitrades initially suggested this pointed to an end of the correction and the beginning of a new impulse up. However, XRPs steeper decline below $3 at the start of August meant the digital asset is yet to fully rediscover its bullish momentum.
The rally failed to break through with any real momentum or follow-through, Casitrades stated. That rejection at $3.31 became our first major clue that the bounce off $3 might only be part of a corrective pattern (B-wave in a larger ABC). Once XRP lost its support at the $3.00, we saw the price drift down toward the next major Fibonacci level: the .5 retracement at $2.75.
Potential for a New Rally
With XRP having responded well since testing the $2.75 level, the analyst believes it can now build a structure to sustain another rally. According to Casitrades, the charts are also showing hints of a potential price increase on both short-term and longer-term charts, which makes the chances of a bull run more likely.
Looking ahead, a proper reclaim of $3.21 and a strong break through would begin to confirm that the correction is complete and a new impulse is underway. If this plays out, our next target zone remains between $4.60$4.80, with the psychological $4.00 level continuing to gain relevance as a likely milestone on the way up, the analyst added.
