On September 19, XRP retreated to the $3 level after briefly climbing above $3.10 for the second time that week. The digital asset shed 3.8% of its USD value on the day, erasing most of its weekly gains and raising concerns among traders about a potential deeper correction.
Positive News Fails to Lift XRP
Despite a flurry of positive developments — including the launch of the first U.S.-listed spot XRP ETF, Grayscale's introduction of the first multi-asset crypto ETP, and Ripple's partnership with DBS and Franklin Templeton on a tokenized asset framework — XRP struggled to capitalize. The token's price action mirrored the broader crypto market downturn, but its inability to build on these catalysts suggested underlying weakness.
Technical Analysis: ABC Correction Targetting $2.90
Crypto analyst Casitrades warned on X that XRP appears to be forming an ABC corrective pattern, with the C-wave target pointing to the $2.92–$2.94 zone, which also coincides with the 0.618 Fibonacci retracement level. He noted that $2.98 is the immediate support to watch; if it breaks, the $2.92–$2.94 region becomes the next critical support.
“The pattern is setting up an ABC with C-wave targets in the low $2.90s, specifically around $2.92 – $2.94. These levels align with both the .618 retracement and the measured C-wave extension. This is the next critical support to defend if $2.98 breaks,” Casitrades wrote in his September 19 analysis.
Mixed Timeframe Signals Favor Downside
Casitrades highlighted that no bullish divergence has yet formed on the one-hour and four-hour charts, which typically precedes a trend reversal. “That points to the probability of another wave lower into the $2.90 support zone,” he explained. On the 15-minute chart, a bullish divergence has emerged, providing a short-term bounce from $3.00. However, without confirmation from higher timeframes, a drop toward $2.90 remains the more likely scenario.
Concluding his analysis, Casitrades said XRP is at a critical juncture:
“If it can defend $2.98, we may see consolidation and an eventual move back to resistance levels ($3.25/$3.44). But if that support fails, then $2.92–$2.94 will be the key zone to watch for a stronger rebound and potential momentum shift.”
Market Outlook
At press time, XRP trades at $2.99, still slightly negative on the day. The focus now is on whether bulls can hold $2.98. A break below that level would open the door to the $2.92–$2.94 zone, where a stronger reaction is expected. Conversely, a successful defense of support could lead to a retest of $3.25 and even $3.44. The coming sessions will determine whether XRP is headed for a deeper correction or a resumption of its uptrend.