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The XRP price has staged an impressive rally in recent days, but this came to an abrupt end yesterday. After rising to as high as $0.6378, it plummeted by more than 11% temporarily. Nevertheless, the popular crypto analyst Dark Defender (@DefendDark) remains bullish in the short-term, even if the dip could widen further in the short term.
XRP Price Could Eclipse The $1 Mark Again
According to him, the XRP price is in a promising short-term uptrend towards the $1.03 mark. This analysis is based on the 4-hour timeframe and shows a complex interplay of market dynamics and technical patterns that suggest a bullish outlook for the cryptocurrency.
The chart shared by Dark Defender shows XRP’s significant rally, marked by 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.
Elliott Wave Theory, which forms a central component 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 includes 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 XRP’s recent uptrend consists of five upward waves labeled (1) through (5). This sequence shows a strong bullish move from the local low to yesterday’s high. Each wave peaked higher than the last, reflecting increasing optimism among investors.
Following the impulse, the chart delineates an ABC corrective pattern, which is characteristic of a temporary reversal in price following the rapid gains of the impulse waves. Wave A signifies the initial drop from the peak, wave B reflects a partial retracement upwards, and wave C, which is anticipated but not yet completed, typically falls below the end of wave A, indicating a further potential decrease in price.
Dark Defender’s chart marks the beginning of this corrective phase, suggesting that wave C could bring the price down to around $0.499 before the market resumes its upward trajectory. “The ABC wave can take 2 days to complete & can extend to $0.499,” the crypto analyst noted.
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To complement the Elliott Wave analysis, Dark Defender employs Fibonacci retracement levels, which are drawn between the recent low and high points on the chart to predict potential support and resistance levels. Notably, a 261.8% extension level at $0.5891 is highlighted as an interim resistance point. Further extensions, like a 161.8% level at $0.8763, serve to identify additional barriers the price might test if the bullish momentum continues.
However, Dark Defender’s short-term price target is significantly higher. According to him, XRP could revisit the $1 mark, which was narrowly missed after the summary judgment in the Ripple vs. SEC case in mid-July last year. “Minor resistance at $0.87 before $1.03. I’ll make sure to keep you posted,” the analyst wrote.
Moreover, 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 dip, the overall market conditions favor a bullish outlook in the short-term.
At press time, XRP traded at $0.58.
Featured image created with DALL·E, chart from TradingView.com
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