XRP Price Crash Almost Over—Analyst Says $8 Is Next
Consistent with the broader market trend, XRP prices have dropped almost -35% since their peak in mid-January, but the downtrend will soon come to a conclusion, according to analyst Dark Defender (@DefendDark). In his latest technical analysis, Highlights XRP finalizes the ABC correction mode in the daily time range because of the fact that the relative intensity index (RSI) is approaching the overselling conditions. This may indicate that the trend reversal leads to a new bullish wavy structure.
ABC correction is the standard mode in Elliott Wave’s theory, representing a three-wave correction movement in an impulse gathering. Wave A usually triggers the first drop, Wave B sees a temporary rebound, Wave C marks the final leg, which usually builds an important bottom. In the case of XRP, Dark Defender’s chart shows that Wave C is about to be completed, meaning that assets may soon be ready for a new impulse uptrend.
Where is the next step in XRP price?
From a technical point of view, the key support level for XRP is between $1.88 and $1.91, which could be a strong foundation for the reversal. If the price action confirms the bottom of this area, the next phase may involve bullish breakthroughs against several important resistance levels. The first key resistance is $2.44 and needs to be broken to confirm the trend shift. Beyond that, the $2.99 area becomes a key obstacle to the $5.85 before potential gatherings, a level that is consistent with the Fibonacci extension.
Related Readings
Looking at other metrics, the RSI in the daily timeframe is approaching oversale conditions, a historically reliable signal that sales momentum may run out soon. A sharp rebound from the region will strengthen the bullish reversal. In addition, the chart shows that XRP has been formed Descent wedge patternstructures usually associated with breakthroughs in rising space. The decisive movement on the wedge-shaped trend line can provide the necessary confirmation for the start of the new Elliott wave cycle.
The Dark Attorney predicts that once the correction phase is completed, XRP may start a five-wave impulsive structure with the goal of moving towards $3.00 in Wave 1, then briefly pulling back, and then extending $5.00-$5.85 in Wave 3. The subsequent merger in wave 4 will be consistent with $8.00 at the 2.00 level in wave 5 Potential long-term goals.
Related Readings
For traders watching XRP’s price action, resistance levels of $2.44 and $2.99 are crucial. Breakthroughs above these areas will confirm the beginning of a bullish uptrend, while the failure to hold the support range of $1.88-$1.91 could indicate further downside risks. Momentum indicators point to fatigue Sales pressurereversal seems increasingly possible, which is an important period for the market structure of XRP.
“Considering the lowest RSI figures, XRP is about to complete the ABC correction mode in the daily time frame. RSI is close to the oversold area. The expected first wave will reach $3, while our target will be between $5 and $8, with a wave of 3-5.” Dark Defender concluded.
At press time, XRP was trading at $2.21.
Featured Images created with dall.e, Charts for TradingView.com
