Recent technical analysis has revealed that the price of XRP is consolidating after breaking through key resistance levels to new highs. A crypto analyst has warning of what is to come The XRP market is undergoing a major changeurges investors not to panic as the RSI remains well above 50%. Discusses his short term and long term predictions XRP stock price historythe analysis shows that the cryptocurrency is firmly positioned in a bullish trend despite upcoming corrections.
The price of XRP RSI suggests at the possible crash
On the XRP 4-hour chart, a double tap structure is indicated in the chart Relative Strength Index (RSI)a technical indicator used to measure cryptocurrency momentum. This double tap pattern usually signals a further down move before a price stability.
Related Reading
According to Dark Defender, a crypto analyst on X (formerly Twitter), the recurring decline of the RSI into pre-sold limits indicates that XRP may experience a price crash to lows. The analyst revealed that the price of XRP has been there before find strong support at $2.17; however, the cryptocurrency experienced a bounce to the upside.
After hitting this support level, the The XRP exchange rate is now equal to ratea pattern that is often associated with a possible increase after a correction. Despite the small market recoverythe analyst has warned of another impending price crash in this same support area as the RSI is approaching oversold levels again.
Earlier in December, the RSI had crossed oversold areas after falling below 30%. Now RSI XRP is above 50% and indicates the possibility of experiencing a price correction between the support levels at $2.17 and $2.18. Dark Defender has revealed that this price crash could happen soon as XRP is expected to enter oversold territory within a day.
Despite the possible price correction, the analyst has admitted that the overall view of the XRP still looks positive, with the expectation of a continuation of the uptrend once the market consolidation after the projected price drop to new levels. Dark Defender has also predicted that It was the smallest stock share of XRP after this projected correction it looks to be above $3, marking a near 40% rise from the $2.17 support area.
The 3-month XRP Chart indicates a strong Bullish position
Following his prediction that the price of XRP could fall as it enters pre-sold conditions, Dark Defender also shared a 3-month chart analysis, painting a A brighter outlook for the cryptocurrency. The chart shows that XRP has broken through a multi-year resistance level for the first time in over five years, indicating a strong bullish trend.
Related Reading
The three-month green candle structure between October and December confirms strong buying pressuresetting the stage for a potentially bullish Q1 2025 from January to March. A round bottom pattern also seen on the 3-month XRP chart. This pattern is a classic bullish reversal structure that shows a gradual transition from a decline to an uptrend.
Dark Defender has identified several Fibonacci levels as potential price targets for XRP. According to the analysis, XRP could see a 261.80% increase to the 5.8563 Fibonacci level between $5 to $9. After that, the analyst expects a 361.80% increase to Fibonacci 18.2275 between $16 to $28. Support levels were at also marked the 0.6649 Fibonacci at $0.9, acting as a safety net for XRP during corrections prices.
Featured image created by Dall.E, chart from Tradingview.com
