From CryptoPotato · By Jordan Lyanchev
All financial markets went through a highly volatile trading week, and crypto was not spared. Within the digital asset market, some performed worse than others, and, unfortunately for the XRP Army, their favorite token was among them.
The cross-border token tanked hard, especially on Friday afternoon, to a seven-week low of $1.17 before rebounding slightly as the day progressed. This massive pullback hurt XRP’s broader sentiment.
Crowd Going Too Bearish?
Popular analyst Ali Martinez commented after XRP’s brutal leg down that social sentiment has dropped to its lowest level since July, reflecting a sharp deterioration in traders’ confidence. From a contrarian perspective, though, he believes that could be a blessing in disguise. The token appears to be forming a potential inverse head-and-shoulders bottom, yet the analyst argued that the broader crowd has not recognized or bought into the setup.
In other words, the bullish side may not yet be overcrowded, as investors have gone into extreme fear territory. That thesis comes shortly after the asset suffered one of the steepest declines among large-cap altcoins today, tanking from $1.35 to $1.185 and then $1.17 on Friday. This became its lowest price tag since the August 22 breakout rally.
Martinez previously identified the right shoulder of a potential inverse H&S structure and pointed to $1.60 as a major upside target if the pattern confirms. However, XRP was rejected at the resistance level he pointed out and has slumped far below his analysis’ support.
$1.10 Next?
Meanwhile, CasiTrades offered a far less optimistic immediate setup, arguing that XRP’s recent push toward the $1.30 C-wave target failed to extend, which she interpreted as evidence that the move was corrective rather than impulsive. With the token slipping back below the key $1.26 support and further beneath $1.20, she now expected a move toward the major $1.10 Fibonacci target, while identifying $1.125 as a possible pause or bounce area beforehand.
She hopes to see a bullish RSI divergence at around $1.10, which would suggest weakening downside momentum and potentially mark the end of the current Wave 2 correction.
Dark Defender, on the other hand, said XRP’s broader structure has not changed and highlighted $1.12 as former resistance from July and August that should now act as support. In his view, the $1.21 and $1.12 zones remain consistent with the Wave 2 roadmap he outlined in late October, while a larger Wave 3 move is still developing.
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