Dark Defender, a market analyst, has recently conducted an analysis on XRP and identified a crucial resistance level that the cryptocurrency needs to surpass in order to experience a significant rally.
Dark Defender established a long-term structure for XRP over a year ago, setting three key price points at $1.88, $5.85, and $18.22 as targets. However, in order to reach these milestones, XRP must first break through a strong resistance point at $0.6649.
Examining XRP’s price over a weekly timeframe, Dark Defender’s chart reveals a strong bullish run for the altcoin, leading to its first wave peak at $0.9327. Initially, the analyst had set an initial XRP target of $0.89, but due to the summary judgment ruling in the Ripple case, the price experienced a more substantial push to $0.93 in July of last year.
Following this high, Dark Defender predicted a subsequent retracement for XRP. Interestingly, the cryptocurrency experienced this retracement and dropped to $0.3814 in July of this year, nearly touching the lowest Fibonacci retracement level at 23.6% ($0.3917).
Despite this significant decline, Dark Defender believes that this is the lowest level that XRP is likely to reach. The price action over the past year indicates a narrowing range for XRP, with the cryptocurrency moving between key support levels of $0.4850 and $0.5286, and facing resistance at $0.6649.
These support and resistance levels play a vital role in determining the future direction of XRP. Dark Defender emphasizes the importance of maintaining support above $0.48, especially $0.3917, as this is crucial for XRP’s upward potential.
Although recent consolidations and pullbacks may suggest a bearish sentiment based on the weekly price chart, Dark Defender suspects that this could be a false signal. The monthly trend remains positive, creating a divergence between the weekly and monthly charts. This indicates that XRP could soon experience significant upward movements if it can break through the $0.6649 resistance level.
The $0.6649 level is particularly significant as it aligns with the 70.20% Fibonacci line and has consistently rejected XRP’s price in the past. Dark Defender refers to this level as the “final boss” and breaking above it could serve as a launchpad for massive price surges. The analyst predicts that once XRP closes above $0.6649 on the daily, weekly, or monthly timeframe, a major rally could follow, with $1.88 as the next immediate target.
Additionally, the chart based on Elliott Wave theory highlights potential higher targets for XRP, including $5.85 and $18.22. However, for these targets to be achieved, XRP needs to maintain key support levels and overcome the resistance zones that have been constraining its price.
While there is a possibility of XRP dipping back to the $0.3917 support level, Dark Defender considers it unlikely as long as the key support levels hold. As of now, XRP is being traded at $0.5302, experiencing a 2.37% drop in the last 24 hours.
It is important to note that this article is for informational purposes only and should not be considered financial advice. The views expressed in this article are the author’s personal opinions and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions, and The Crypto Basic will not be held responsible for any financial losses incurred.
