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In a new technical analysis posted on X, cryptocurrency analyst Dark Defender (@DefendDark) offers: dropping A very bullish outlook for XRP price. It leverages Elliott Wave Theory to suggest a potential rally to $18.22 in what is expected to be the third wave of a major bullish cycle. This analysis is supported by a detailed review of XRP price action, key support levels, and technical indicators on the weekly chart.
Why XRP Price Is Expected To Reach $18
The Elliott Wave Theory assumes that market prices unfold in specific patterns, referred to as waves. According to this theory, a typical cycle consists of five waves, with waves 1, 3, and 5 being impulsive waves that move in the direction of the overall trend, and waves 2 and 4 being corrective waves that move against it. The third wave is often the most dynamic and achieves the greatest price distance.
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When analyzing the XRP chart, Dark Defender indicates that XRP has completed its first and second waves. The first wave saw a significant uptrend. XRP rose to $0.93 in July 2023, followed by a downward correction in the second wave, which is normal in Elliott wave formations. The second wave brought the XRP price below the $0.39 level in July 2024, which represents the bottom.
The consolidation phase between 0.6649 and 0.3917 ended the correction phase and set the stage for the expected third wave. It is worth noting that the transition to the third wave coincides with the formation of a “higher low” on the RSI.
A higher low on the RSI during a corrective wave (wave 2) indicates underlying strength and usually precedes a strong uptrend, indicating that the price has maintained higher relative lows despite the correction. This formation is viewed as a bullish signal by the Dark Defender, reinforcing the possibility of the start of wave 3.
Dark Defender analysis includes critical Fibonacci extension levels that act as potential targets and resistance levels in the upward trajectory. The 23.60% Fibonacci retracement level at $0.3917 and the 50.00% Fibonacci retracement level at $0.5286 acted as important supports during the corrective phase. With XRP price currently trading around $0.56, the next price target is $0.6649 (70.20%).
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These levels are crucial as they represent intermediate resistances that XRP has encountered and must break to confirm the uptrend. The crypto analyst highlights the 0.6649 level as particularly important as it represents the upper bound of the previous consolidation.
“It has been a long time since XRP price started consolidating between $0.6649 and $0.3917. On the weekly timeframe, RSI dips have been forming in parallel with price declines. The weekly RSI golden cross is present. We have consistently emphasized the importance of the $0.6649 level. This level, which is above the weekly Ichimoku pullback, is a crucial marker that should be present before a rally,” Dark Defender explained via X.
As the price advances, the 100.00% Fibonacci level at $0.9327 represents a full recovery and doubling from some recent lows, setting the baseline for the next impulse wave. The 161.80% and 261.80% Fibonacci extensions, which equate to $1.8815 and $5.8563 respectively, are higher upside targets that could be reached in the event of a strong market rally.
The final price target for wave 3, represented by the 361.80% level at $18.22, would mark an extraordinary rally, reminiscent of the massive gains we saw in the 2017 crypto bull market. “We are experiencing a pre-2017 experience by standing weeks ahead of XRP’s rally. If a similar rally occurs, the $18.22 (NFA) level, the 361.80% Fib level, is expected to be the upper target level for wave 3. It would be great to see all of this come to fruition,” Dark Defender concluded.
At the time of publishing this report, XRP was trading at $0.5672.
Featured image created using DALL.E, chart from TradingView.com
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