XRP Risks Short-Term Liquidations as Price Breaks Negative Monthly Streak

$XRP has recorded a 6% price increase and soared past the $1.40 key resistance level in the last 24 hours. However, crypto analyst CasiTrades believes this could be a "dead cat bounce" that will get bulls trapped, as nothing has really changed with the asset aside from breaking its negative monthly streak.

$XRP Elliott Wave analysis points to possible retracement

According to CasiTrades, although the recent $XRP price jump looks bullish, the coin is likely to suffer another price drop. The analyst cites $XRP’s indicators, like the Relative Strength Index (RSI), as providing a warning of this possible decline.

Notably, $XRP’s RSI is at 50.04, which suggests a neutral position. This implies that it could swing in either direction depending on investor sentiment. The immediate short-term bias suggests that traders are cautiously bullish, but any shock on the broader market could trigger a downward movement.

$XRP might have climbed above the consolidation trend line, but this same level is acting as a resistance, which signals bearish momentum. If sellers overwhelm the market, CasiTrades opines that the price could dip.

The analyst also used the Elliot Wave structure to analyze the price outlook of $XRP. She believes that $XRP is in Wave 2 of "temporary recovery." If the asset is unable to climb and break above between $1.51 and $1.55, it might suffer a retracement.

A reversal of the current bounce, if severe, could see the price crash to a low of $0.87, which is the next crucial support. The only way for the coin to void this bearish wave theory is for $XRP to break and hold above $1.65.

As of this writing, $XRP exchanged hands at $1.44, which is a 6.06% increase in the last 24 hours. The coin earlier soared to $1.46 before a slight dip. However, its trading volume remains high, as it is up by 83.77% at $3.3 billion within the same time frame.

$XRP breaks five-month losing streak

The staggering volume and slight climb in price have helped $XRP break out of its five-month negative streak.

Since October 2025, $XRP has closed in the red in double digits. In October, $XRP closed down by 11.9% and stayed bearish in November and December, with -13.8% and -14.8%, respectively.

In 2026, it continued on its bearish path as January and February recorded 10.6% and 16.2% drawdowns, respectively. However, with the current bullish outlook, March has eased into the green and is up by 2.74%.

Meanwhile, $XRP has outperformed Ethereum in funds flows as institutional investors moved in on the Ripple asset. These developments could support $XRP’s quest to break out.