XRP price continues to show a level A remarkable display of strength Although it has been in a corrective phase since it reached above $2.8 on December 3 for the first time in almost seven years.
Interestingly, technical analysis shows that the corrective phase is highlighted by the corrective ABC pattern on the daily candlestick chart. Hence, it seems that XRP price is now poised to break out to all-time highs above $5.8 and up to $18.22.
The ABC corrective wave pattern is nearing completion
XRP bulls have It managed to hold above the $2 mark Since the beginning of December in what appears to be a new minimum price for the cryptocurrency. according to Technical analysis of XRP price By cryptocurrency analyst Dark Defender, this corrective phase took place in three waves A, B and C.
the ABC corrective pattern It is a structure often seen during consolidations before the underlying trend continues. Waves A and C were corrective waves in a downtrend, while wave B was highlighted by a move in an uptrend. Furthermore, the analysis shows that these bullish and bearish movements were confined below the daily resistance trend line.
Currently, the XRP price movements in the past two days have been bullish in nature, and the cryptocurrency is now on the verge of breaking above the daily resistance trend line. As Dark Defender pointed out, XRP has almost finished running the ABC corrective wave pattern.
The analyst noted that confirmation of this pattern depends on the ability of XRP price to break through the critical resistance level at $2.52. Recent XRP price action suggests that this breakout is expected to occur soon, with Dark Defender predicting this move to occur within the next 24 hours. If this happens, it could mark the beginning of a new bullish phase, with an initial target of $5.85.
Road to $5.85 and onward to $18.22
Dark Defender determined the price path of XRP in two stages After the expected breakthrough. The first important resistance area is located at $5.85, which matches the target highlighted by the Fibonacci Extension indicator. Reaching the $5.85 price level would entail breaking XRP’s current all-time high of $3.40, which has remained the longest among cryptocurrencies.
Furthermore, such a move would see XRP’s market cap reach the $1 trillion threshold from its current fully diluted value of $244.03 billion. However, the analyst predicted that crossing the $5.85 level would open the door to an extended rally towards $18.22.
At the time of writing, XRP is trading at $2.44, having risen by about 5% in the past 24 hours. Reaching the target price of $5.85 and $18.22 would result in an upside of 140% and 645% respectively from the current price level.
Featured image created with Dall.E, chart from Tradingview.com