XRP Could Hit $0.39 Before Soaring 1000%: Crypto Analyst
January 22 2024 - 5:00PM
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The price of XRP is currently navigating bearish territory.
Following its descent below the 200-day exponential moving average
(EMA), the digital currency has further dipped beneath the critical
0.618 Fibonacci retracement level. Despite this downward trend,
renowned crypto analyst Dark Defender offers a glimmer of optimism
for the XRP army. However, he also suggests that the market might
face additional challenges first before embarking on a remarkable
1000% surge. In his latest analysis, the crypto analyst shared
the weekly XRP/USD chart, employing a range of technical indicators
including the Ichimoku Cloud, Fibonacci levels, ABC corrective
patterns, and Elliott Wave theory. XRP Price Could Drop Further The
chart provided depicts XRP’s price movements within the context of
an Elliott Wave structure, which postulates that markets move in
predictable, repetitive cycles. The analyst is identifying the
progress of an ABC correction pattern within a larger Elliott Wave
cycle. This correction consists of three waves: A (down), B (up),
and C (down again), which is purportedly nearing completion. Dark
Defender’s analysis suggests that the current market structure for
XRP mirrors that of a period in early 2021 when the crypto asset
surged by 1,060% in less than four months. According to Dark
Defender, this is indicated by the confluence of the RSI readings
and price action. Related Reading: XRP Crash Fears Mount As Whale
Dumps 26 Million Tokens – Details The RSI, a momentum oscillator
that measures the extent of recent price changes to evaluate
overbought or oversold conditions, is marked with a white circle at
a level of approximately 47.61, indicating neutrality. This is
similar to the RSI level noted in 2021, suggesting a potential
repetition in market sentiment and behavior. Moreover, the RSI is
currently in an uptrend, as previously stated, with plenty of room
to the upside. The Ichimoku Cloud, a collection of indicators that
show support and resistance levels, as well as momentum and trend
direction, shows that XRP is trading within the cloud on the weekly
timeframe. A breakout from the cloud could signal a strong trend in
the direction of the breakout. Fibonacci levels, derived from the
Fibonacci sequence, are used to predict the extent of a correction
or a continuation of a trend. The chart highlights several key
Fibonacci retracement levels from a recent high to a low. These
levels are $0.3917 (23.60%), $0.4623 (38.20%), $0.5286 (50.00%),
and $0.6649 (70.20%). Related Reading: XRP Price Breakout To $5:
Analyst Reveals Key Levels Of Importance According to the analysis,
holding above or below the 50% retracement level at $0.5286 could
indicate the likelihood of testing the next levels at $0.6649 or
falling towards $0.3917, respectively. “#Equation: 1. XRP stays
below $0.52 for 3 days —>$0.39 in play 2. XRP stays above $0.52
for 3 days—> $0.66 in play,” the analyst remarked. Followed By
1000% Price Rally Looking further ahead, the Fibonacci extension
level at 161.80%, which translates to a price target of $1.8815, is
highlighted as potential objectives for Wave 3 of the Elliott Wave
cycle. The analyst has outlined a substantial potential increase,
with a range up to $5.85, which would exceed the 161.80% Fibonacci
extension level. However, it’s important for traders to note the
main resistance trend line that has been pressing down on the price
(red line), as well as the support trend line that has been
upholding the price during retracements (blue line) are the most
crucial price levels at the moment. The convergence of these trend
lines forms a triangle that is a focal point for the price action
going forward. A decisive break in either direction could lead to
significant price moves – either to $0.39 or $0.66 in the
short-term. In conclusion, Dark Defender’s analysis presents two
pivotal scenarios, both leading to the anticipation of a major wave
up (Wave 3) after the completion of the current corrective phase.
“One way or another, wave 2 will be completed & wave 3 is
expected to target $1.88 – $5.85 for both scenarios,” Dark Defender
concludes. At press time, XRP traded at $0.53195. Featured image
from Shutterstock, chart from TradingView.com
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