XRP price has reached a critical support level and crypto analyst, CasiTrades, suggests a potential Elliott Wave run on the price toward $2.40. The analyst pinpointed $1.27 as a critical price threshold that XRP will need to clear to make a bigger come back. Adding to the mix of macroeconomic factors leading up to the FOMC meeting on October 28 will be any expectations of a rate hike cut by Fed Chair Kevin Warsh in his comments.
XRP Price Holds $1.27 As CasiTrades Maps $2.40 Target
On X, CasiTrades pointed out how XRP price responded at the local 0.618 Fibonacci Retracement level at $1.27. This zone was also seen as a significant area of potential Wave 2 activity by the analyst according to Elliott Wave Theory.
“XRP found support right at the $1.27 target, the local .618 Fib retrace and a key target for W2 in Elliott Wave Theory,” CasiTrades wrote.
The analyst then observed that XRP was then testing its first local resistance at $1.30. But the recovery so far hasn’t made it official that the correction is over.
CasiTrades declared, “A good initial sign that the bottom may be in!” However, she warned traders not to expect to see XRP price surge immediately.
“But as we discussed in the livestream, bottoming is a PROCESS. We could see several tests of $1.27 before the market is ready to move higher.”
The four-hour chart below indicates the XRP is moving back from its September high of $1.65. After dipping below a few short-term Fibonacci levels, the price is on the verge of crossing an ascending support line around $1.25 – $1.27. RSI readings around 41 and 47 also indicate that momentum is still low.
CasiTrades recognized $1.65 as an important resistance level that could help confirm a bigger bullish reversal.
“What I really want to see is XRP breaking $1.65 resistance, that break targets $2.40 for a sub W3,” the analyst wrote.
She further explained, “That would give us strong confirmation that W2 is complete and we’re pivoting into a macro W3 targeting new all-time highs.”
If support is not found, the bearish scenario is still alive. CasiTrades warned, “If previous low ultimately fails, $1.10 and potentially $0.87 are still on the table.”
Kevin Warsh Comments Reduce October Rate Hike Bets
Another indicator that is of interest to crypto traders is the next policy decision by the Federal Reserve. Calls for a rate hike rose to 55% after US inflation data beat estimates but dropped after last week’s IMF remarks in Bangkok by Warsh.
Discussing the economic outlook, Warsh said, “We came to a judgment — what are we seeing in the global economy as it affects the US?”
He added, “I’m going to say, broadly, over the month or so that’s transpired since then, the world has broadly conformed with our expectations.”
The bets against a rate hike dropped from about 27% to about 15% on Friday, according to Fed funds futures.
Warsh did not give a definite date for the October decision. He said, “I don’t prejudge meetings. I don’t believe in saying now what I might do at the meetings that we have in the balance of this year.”
Goldman Sachs economists said, however, that in his speech and the words of other FOMC meeting members, the officials appeared to be readying themselves to hold back in October. However, the bank is hoping for further Fed rate hikes at the last meeting of the year in December.
US Inflation Keeps Fed Policy in Focus
US CPI inflation rose to 3.7% in the U.S. in September, beating forecasts in the wake of increased fuel prices driven by the Iran war. The rate of core inflation, which is calculated without food and energy, increased to 2.6% from 2.4% in August.
Warsh accepted that there has been ongoing pressure on prices. He stated, “It’s hard to be in a discussion of the central bankers and not compare notes and hear the same thing about the surge in prices.”
In September, the Fed increased its benchmark interest rate from 3.5% to 3.75-4%, the first increase since July 2023. The meeting on 28 Oct will be the deciding moment as to whether that will be the stance taken or if officials will hike up borrowing costs again, as inflation continues to be high.
Kritika Mehta
Kritika Mehta is a crypto journalist and editor with nearly three years of experience covering breaking news, market developments, regulation, and emerging trends in the digital asset industry. She has written for leading publications including CoinGape, CryptoNewsZ, The Crypto Times, Times Crypto, and The Coin Republic. Her coverage focuses on breaking news, exclusive industry stories, and community-driven narratives. Her work has a strong emphasis on factual accuracy, reliable sourcing, and clear reporting. She also has experience editing crypto news, managing writers, and working on fast-paced stories under tight deadlines.
