In his latest technical view, crypto analyst Dark Defender has done just that marked the key insights for XRP during the recent price action. Since the yearly high of $0.64 on January 3, the XRP price has fallen 18.8%, raising the risk of a further decline before the bulls take over.
XRP Price Set for Latest Dip?
According to the daily XRP/USD chart, the price closed below the significant level of $0.5286. As a result, the RSI is “forced to remain below the Resistance Trend Line,” implying that the bears are currently in control, putting downward pressure on the price.
Remarkably, the price has been in a symmetrical triangle formation since November last year, which is considered a bullish continuation pattern. XRP price has already been rejected three times at the descending resistance line. At the same time, the RSI on the 1-day chart also formed a descending trend line. Every time the price was rejected at the resistance line, there was also a rejection from the RSI at the trend line.
Yesterday, Sunday, it looked like XRP might break above the rising trendline of the RSI, and the price might follow suit and make another attempt to break out of the symmetrical triangle. Dark Defender wrote:
XRP moved towards $0.52-$0.53 as we expected. The target area was $0.5286 and XRP closed just above that level yesterday and had a breakout on the RSI. This is a great sign for XRP to attempt the $0.60 resistance soon […] But of course, we’ll be more than happy to see XRP break through $0.6649 first and continue with the initial Wave 3 Fibonacci target at $1.88.
However, this game plan was invalidated as XRP closed below $0.5286 and the RSI trendline. Now the analyst identifies two key support levels: the trend support at $0.5085 and the Fibonacci support at $0.4623. These levels are now considered crucial as XRP is trading below the $0.53 threshold.
Dark Defender emphasizes the importance of this support: “So $0.5085 and $0.4623 support becomes more important now.”
The daily RSI indicator also suggests that XRP is in oversold territory, which typically indicates that the asset may be undervalued and could possibly turn upside. However, the analyst warns that the “weekly frame trumps the daily,” suggesting that longer time frames could significantly impact the asset’s price. “The more XRP stays below $0.52, the more support becomes prominent,” he added.
Looking ahead, Dark Defender expects a potential “wick below these levels to complete this annoying fix” and hints at an eventual recovery, with expectations focused on “Wave 3 at the end.” This reference to the Elliott Wave Theory suggests that a strong uptrend could emerge after the correction. The final price target would then be $1.88.
Despite the current market conditions, Dark Defender advises the community to stay positive: “Be positive and be strong because this will be over.” The statement conveys a sense of resilience and long-term perspective amid short-term market fluctuations.
At the time of writing, XRP was trading at $0.52297.
Featured image from Shutterstock, chart from TradingView.com
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