XRP Price Analysis: Potential for Further Drop
The price of XRP has entered bearish territory, falling below the 200-day exponential moving average (EMA) and the critical 0.618 Fibonacci retracement level. However, crypto analyst Dark Defender offers some optimism for XRP investors. In his analysis, he examines the weekly XRP/USD chart using various technical indicators, including the Ichimoku Cloud, Fibonacci levels, ABC corrective patterns, and Elliott Wave theory.
XRP Price Could Drop Further
Dark Defender’s analysis reveals that XRP is currently in an ABC correction pattern within a larger Elliott Wave cycle. This correction consists of three waves: A (down), B (up), and C (down again). According to Dark Defender, this correction is nearing completion.
Dark Defender compares the current market structure of XRP to a period in early 2021 when the cryptocurrency surged by 1,060%. He points out similarities in RSI readings and price action, suggesting a potential repetition in market sentiment and behavior.
The Ichimoku Cloud indicates that XRP is trading within the cloud on the weekly timeframe. A breakout from the cloud could signal a strong trend in either direction.
Fibonacci levels suggest that holding above or below the 50% retracement level at $0.5286 could indicate further price movement towards $0.6649 or $0.3917, respectively.
Followed By 1000% Price Rally
Looking ahead, Dark Defender highlights the Fibonacci extension level at 161.80% as a potential price target of $1.8815 for Wave 3 of the Elliott Wave cycle. The analyst suggests that there is potential for an even greater increase up to $5.85.
However, it’s crucial to pay attention to the main resistance and support trend lines, as a decisive break in either direction could lead to significant price moves in the short-term.
Hot Take: Anticipating Wave 3 for XRP
In conclusion, Dark Defender’s analysis presents two scenarios that both indicate a major wave up (Wave 3) after the completion of the current corrective phase. The analyst expects XRP to target a price range of $1.88 to $5.85. At present, XRP is trading at $0.53195.
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