XRP Primed for Volatility: May Chart Pattern Suggests a $1.90 Fakeout Before Bull Run

XRP traders, brace for a classic crypto fakeout. The May chart setup hints at a violent wick to $1.90—likely liquidating overleveraged longs—before the real breakout begins.

Why it matters: These shakeouts often precede major rallies. Market makers love nothing more than harvesting stop-losses from retail traders who still think TA works in a market rigged by whales.

The bullish case: On-chain data shows accumulation at current levels, while the RSI divergence screams ’oversold.’ If Bitcoin holds $60k, XRP could ride the altcoin rotation wave.

Reality check: Of course, this entire thesis collapses if the SEC suddenly remembers it hates crypto again—but when has regulatory risk ever stopped a good pump?

• XRP faces a decisive retest at $2.25, signaling a short-term bearish correction.
• A decline toward $1.90 could serve as the final flush before bullish momentum resumes.
• RSI on both daily and 4-hour charts hints at exhaustion, suggesting a rebound may follow.

May 1 begins with XRP clashing against the significant $2.25 price wall, a level that once supported the asset’s rally but has since turned into a resistance barrier.

As market analyst CasiTrades put it, XRP’s inability to sustain above this point in recent times is a reflection of a continued corrective pattern of a wave. What was a relief rally in the form of subwave B is now over, followed by what is potentially a steeper decline: subwave C.

Technical analysis indicates this ongoing wave has the potential to take XRP to $2.00 and has the potential to dip to even $1.90. This point is not random; it is directly in line with both the 0.5 and 0.618 Fibonacci levels of the last upsurge.

Historically, these retracement levels have provided good turning points in bullish movements. For XRP, $1.90 has never been tested since its most recent breakout and is thus a rational selling target and a key checkpoint to measure against before re-entering.

Chart Breakdown: Daily and 4-Hour Views in Focus

A detailed chart breakdown for the day finds XRP in a bearish continuation pattern represented by a descending triangle. The rejection at $2.25 is now a back-test and possibly a confirmation of resistance.

Support levels at $2.00 and $1.90 are holding firm, with $1.90 also turning into a confluence level on historical price action and Fibonacci readings.

In parallel, the 4-hour chart brings clarity to the developing wave structure. The symmetrical triangle earlier held out hope of a breakout in either direction, but XRP’s break below the lower trendline shifts momentum downwards. This movement establishes that this is indeed subwave C in progress, and how it will unfold is dependent on market response around $1.90.

The RSI readings on both timeframes are highlighted by CasiTrades, indicating exhaustion. With RSI at or below levels of oversold thresholds, a reversal becomes more likely. This does not refute the bearish drift seen but implies a finite downside before movement is reversed.

XRP Eyes $2.68 and $3.00 Once $2.25 Is Reclaimed

The overall scenario is unchanged. XRP’s long-term outlook continues to be positive, with targets at $2.68 and $3.00 when $2.25 is regained convincingly. If XRP finally completes its pullback with a wick to $1.90 and bounces back, it may signal the completion of the corrective pattern.

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