XRP Price May Have Found a Bottom — Can It Rally to $3.80 Next?

XRP Price Holding Strong: A Potential Bottom or Deeper Correction?

XRP’s price action over the past few weeks has raised both hopes and concerns among traders. The popular cryptocurrency fell by 22% between March 19 and March 31, hitting a low of $2.02, which many are speculating could mark a local bottom. Since then, XRP has seen a modest recovery, climbing by 9% to around $2.20 before retracing slightly to current levels. The question now is: has XRP finally bottomed out, or is a deeper retracement on the horizon?

Bullish Divergence Signals Potential Reversal

A promising sign for XRP bulls comes from the Relative Strength Index (RSI). Analyst CasiTrades has pointed out a bullish divergence across multiple timeframes, from the 15-minute chart all the way up to the 4-hour chart. A bullish divergence occurs when the price prints lower lows, but the RSI produces higher lows, indicating waning downward momentum and a potential reversal.

XRP/USD hourly chart. Source: CasiTrades

CasiTrades highlighted that after reaching the 0.786 retracement level at $2.05, XRP has been printing bullish divergences. "This type of signal is positive for both short-term bounces and a macro recovery," the analyst noted in a March 31 post on X. The bounce from $2.02 seems to be holding, making this a critical point for traders to watch.

Key Resistance Levels and Bullish Targets

Looking ahead, $2.25 remains a key resistance level for XRP. A break above this level, especially with strong momentum, would signal a convincing bullish breakout, possibly negating the need for another retest of support levels. CasiTrades suggests that if XRP can break through $2.25, it could signal a bullish reversal, setting the stage for a move toward higher price targets.

In terms of short-term price projections, the analyst forecasts a bullish month for XRP in April, with targets of $2.70 and $3.80. “Once the price reaches $2.70, I expect a large impulse to the upside, with key resistance aligning to $3.80,” CasiTrades said.

XRP/USD daily chart with H&S pattern. Source: TradingVie

The Risk of Deeper Correction: Head-and-Shoulders Pattern

Despite the optimistic outlook from some analysts, veteran trader Peter Brandt remains cautious. Brandt has pointed to a potential head-and-shoulders (H&S) pattern on XRP’s daily chart, which could suggest a further decline. In technical analysis, a head-and-shoulders pattern is often seen as a bearish reversal signal, and if the price breaks below the neckline at $1.90, it could signal a drop to as low as $1.07.

Brandt warned, “Below $1.90, I would not want to own it. The H&S pattern projects a price target of $1.07.” However, this bearish scenario would be invalidated if XRP can maintain its price above $3.00, which would suggest continued bullish momentum.

Macroeconomic Headwinds Could Weigh on XRP

Adding to the uncertainty, macroeconomic factors could also impact XRP’s price trajectory. On April 2, U.S. President Donald Trump is expected to announce new tariffs, which could create volatility in global markets and influence traders’ risk appetite. If these tariffs spook investors, XRP could be pulled back toward lower levels, with some analysts predicting a potential dip to $1.31.

Diverging Outlooks: A Bullish or Bearish Month Ahead?

Not all analysts share Brandt’s bearish outlook. Analyst Dark Defender, for example, is optimistic about XRP’s short-term prospects. Dark Defender believes that XRP is likely to revisit its last Fibonacci level at $2.04 before bouncing back, and that a key resistance level at $2.22 must be broken for a sustained recovery. The analyst has also set higher targets, forecasting that XRP could reach between $5 and $8 in the coming months, especially during the April-May period.

“April-May will be hot for XRP, with targets of $5 to $8 in Wave 5,” Dark Defender predicts, suggesting a positive outlook despite the ongoing uncertainty.

Conclusion: Will XRP Break Out or Fall Further?

As XRP holds above $2.05, the question remains whether it has found its bottom or if further downside risks will materialize. On the one hand, the bullish divergence on the RSI and the potential breakout above $2.25 point to a possible rally toward $3.80. On the other hand, the looming head-and-shoulders pattern and macroeconomic uncertainties could drag the price lower, with $1.90 as a key support level to watch.

XRP/USD daily chart. Source: Dark Defender

Investors should stay alert to market developments and technical signals in the coming weeks as the fate of XRP’s price remains in play.

For more analysis on XRP and cryptocurrency markets, visit CoinMarketCap.