Analyst: I Am Not Convinced the Bottom Is In On XRP. Here’s Why
Markets often tempt investors with sharp rebounds that look like definitive turning points. Prices surge, optimism spreads, and social sentiment shifts almost overnight. However, experienced traders know that true bottoms reveal themselves through structural confirmation, not emotional conviction. XRP now finds itself at one of those decisive technical crossroads.
Crypto analyst TARA recently shared her cautionary stance on X, stating that she is not convinced XRP has formed a bottom. She pointed to a critical macro Fibonacci level that the asset is currently testing as resistance. According to TARA, only a decisive break back above this level would provide early evidence that a sustainable reversal has begun.
The Significance of the Macro 0.618 Level
On the 4-hour TradingView chart TARA referenced, XRP tests the 0.618 Fibonacci retracement level near $1.47. Technical analysts widely regard the 0.618 retracement—often called the golden ratio—as one of the most important levels during corrective phases. When price remains below this level, the broader correction often stays intact. When price reclaims it with strength, momentum frequently shifts in favor of buyers.
XRP recently rallied toward $1.46, approaching this resistance zone. However, by February 26, the asset pulled back to approximately $1.43. That rejection reinforces the idea that sellers still defend the macro .618 level aggressively.
Momentum Signals Show Caution
The chart also shows the Relative Strength Index hovering around 66, just below overbought territory. An RSI reading in the mid-60s signals strong short-term momentum, but it also warns that upside may face exhaustion if resistance holds.
Momentum indicators often peak near resistance during relief rallies. If buyers fail to break through decisively, the market frequently rotates lower. In XRP’s case, continued rejection at $1.47 could open the door for a retest of lower supports around $1.35.
Why Structural Confirmation Matters
TARA emphasizes that reclaiming $1.47 would mark an early structural shift. A strong and sustained move above the macro .618 level would convert resistance into support and strengthen the bullish reversal thesis. Without that confirmation, the recent rally remains technically classified as a counter-trend bounce within a broader corrective structure.
Markets regularly produce temporary surges before resuming downward movement. Traders who anticipate a bottom too early often face renewed volatility.
XRP now trades at a super critical inflection point. A decisive break above $1.47 would significantly improve the outlook. Failure to do so would keep the possibility of further downside in play. For now, the chart demands patience and confirmation over excitement.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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