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In a new analysis, cryptocurrency analyst Dark Defender (@DefendDark) Highlights An important pattern on the daily chart of XRP/USDT indicates a possible sharp rise in the price of XRP. According to his analysis, XRP price is likely to form a technical pattern known as a “bullish flag” after breaking decisively above the multi-year resistance at $0.6649, a move that was further proven by two consecutive daily closes above this key level.
Will XRP reach $1.03 this week?
A “bull flag” pattern occurs when an asset’s price moves sharply upward, then consolidates in a narrow, downward-sloping range, similar to a flag on a pole. This pattern is typically considered a continuation pattern, which indicates that after a consolidation phase, the price is likely to break out upward in the direction of the initial sharp movement. In the context of XRP, a flagpole was formed by the sharp price increase from $0.52 until the breakout above $0.6649.
Furthermore, the Dark Defender indicates the Relative Strength Index (RSI), which is currently in the overbought zone at 84. An overbought RSI often indicates that the asset may pause or consolidate due to short-term selling pressure as traders… Make profits.
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This is in line with expectations for the consolidation phase of the bull flag pattern. However, an RSI in the overbought zone in the context of a bull flag pattern can also indicate strong fundamental momentum, indicating that once consolidation is complete, a breakout to the upside could follow.
Dark Defender highlights the next big price target at $1.03, which could be achieved quickly if XRP can rise beyond immediate resistance near $0.7496. Specifically, minor touches or closes above $0.7496, with potential rises to $0.76 or higher, are critical for this bullish scenario to occur. If these conditions are met, Dark Defender predicts that the price of XRP could rise to $1.03 within this week.
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Notably, the analysis also relies on understanding Fibonacci levels, which are widely used in cryptocurrency trading to predict potential support and resistance levels based on past market movements. The level at $0.6649, which has now been crossed, is likely a 70.20% retracement from the previous market high to the lowest.
If this level is breached to the downside, the bullish flag pattern may extend further downwards. After that, the 61.80% and 50% Fibonacci levels at $0.6044 and $0.5286 could serve as a support area from which XRP price could rise above $1.
“XRP closed two days in a row above $0.6649,” the analyst says. “Now we can say that this Fibonacci level is also dead. There are no levels more fundamental than this until $1.03. If we see touches above $0.7496, such as $0.76 or more, we can We quickly expect $1.03 this week This is not a financial advice but it is my prediction stating that XRP broke the multi-year resistance (7). $0.6649 in November 2024.”
At press time, XRP was trading at $0.7086.
Featured image created with DALL.E, a chart from TradingView.com
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