XRP price has been on an impressive run in recent days, but that rally came to an abrupt end yesterday. After rising to $0.6378, it temporarily dropped by over 11%. However, popular crypto analyst Dark Defender (@DefendDark) remains bullish in the short term, even if the decline widens further in the short term.
XRP Price Could Break $1 Barrier Again
According to him, the price of XRP is in a promising short-term uptrend towards the $1.03 level. analysis It is based on the 4-hour time frame and shows a complex interaction between market dynamics and technical patterns that indicate a bullish outlook for the cryptocurrency.
The chart shared by Dark Defender shows a significant surge in XRP price, which has seen a 67.56% increase from a low of $0.3814 to a recent high of $0.6378. The forecast uses Elliott Wave Theory and Fibonacci retracement levels to predict the price target. Both technical analysis tools are often used to predict potential price levels based on past market behavior.
The Elliott Wave Theory, a staple of Dark Defender’s analysis, posits that market prices unfold in specific patterns, called waves, that are repetitive in nature. According to this theory, a typical cycle involves eight waves — five in the direction of the prevailing trend followed by three corrective waves, which Dark Defender identifies on the XRP chart.
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The impulse sequence observed in the recent XRP bullish trend consists of five ascending waves marked from (1) to (5). This sequence shows a strong upward move from a local low to yesterday’s high. Each wave peaked higher than the previous one, reflecting the growing optimism among investors.
After the impulse, the chart plots an ABC correction pattern, which is characteristic of a temporary reversal in price after rapid gains in impulse waves. Wave A marks the initial decline from the peak, wave B reflects a partial correction upward, and wave C, which is expected to complete but has not yet completed, usually falls below the end of wave A, indicating a possible further decline in price.
Dark Defender’s chart indicates the beginning of this corrective phase, suggesting that wave C could lead the price to around $0.499 before the market resumes its upward trajectory. “The ABC wave could take two days to complete and could extend to $0.499,” the crypto analyst noted.
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To complete the Elliott Wave analysis, Dark Defender uses Fibonacci retracement levels, which are plotted between recent lows and highs on the chart, to predict potential support and resistance levels. Notably, the 261.8% extension level at $0.5891 stands out as a temporary resistance point. Additional extensions, such as the 161.8% level at $0.8763, mark additional barriers that the price may test if the upward momentum continues.
However, Dark Defender’s short-term price target is much higher. According to him, XRP could return to the $1 level, which was narrowly missed after the summary judgment in the Ripple vs. SEC case in mid-July last year. “Minor resistance at $0.87 ahead of $1.03. I’ll be sure to update you on the latest developments,” the analyst wrote.
Furthermore, the chart features an Ichimoku cloud, indicating that the current price is above the cloud, which is traditionally interpreted as a bullish signal. This suggests that despite the expected corrective decline, the overall market conditions favor a bullish outlook in the near term.
At the time of publishing this report, XRP was trading at $0.58.
Featured image created using DALL E, chart from TradingView.com