Some prominent analysts believe XRP is on track to experience a temporary pullback before recording a more explosive price surge.

This opinion is shared by market watchers Trader Fred and Crypto Ed, who have forecasted a short-term correction before an expected bullish surge. Notably, their analyses came up as XRP outperformed the rest of the market, recording an uptrend where others declined.

XRP witnessed a dramatic rebound following a collapse to $0.54 on July 19. This rebound allowed it to recover the $0.65 high yesterday for the first time in four months. The upsurge marked a 72% increase over a 20-day period, as XRP aimed for $0.70. Amid the rally, Binance XRP deposits exceeded 3 billion tokens on July 29.

XRP Poised for a Correction

However, the latest analyses confirm that the next direction for XRP is down. Trader Fred identified a significant resistance level at $0.70 that XRP has not yet tested.

According to his analysis, a correction is imminent before XRP can gather the necessary momentum to break this resistance. His chart indicates several key support levels at $0.5711, $0.5408, $0.4983, and $0.4550, suggesting that the price may decline to these levels before rebounding.

An Imminent Rebound Post-Correction

He noted that his plan is to short XRP at this level. He believes this correction is a preparatory phase for XRP to build the strength for a future rally past $0.70. While the market may experience short-term fluctuations before stabilizing, Fred expects an imminent push toward the $1 level.

Meanwhile, another analyst, Crypto Ed, presents a slightly different perspective but aligns with the overall expectation of a short-term correction.

His chart features a completed 5-wave Elliott pattern, indicating the end of a mild bullish cycle and the onset of a corrective phase. He called attention to a bearish divergence in the RSI, where the RSI witnessed lower highs as XRP’s price recorded higher highs. This supports the expectation of a weakening bullish momentum.

Crypto Ed

Ed identifies $0.55 as a critical support level where XRP might find stability during the impending correction. His analysis suggests that this pullback will provide an opportune moment for traders to enter the market, as a substantial rebound is expected to follow.

XRP Current Market Condition

The chart illustrates a potential decline to $0.55, followed by a significant upward surge. Interestingly, at the reporting time, XRP has already begun this corrective phase, having collapsed 2.10% today. XRP is now retesting the psychological support level at $0.60, as the bears attempt to breach this defense.

XRP Daily Chart

The spike to $0.65 yesterday coincided with a retest of the upper Bollinger Band ($0.6512), resulting in the expected rejection. Currently trading for $0.6097, XRP remains above the 20-day SMA ($0.5906). However, if the bears successfully breach below the $0.60 psychological defense, a retest of this moving average could follow.