As a seasoned crypto investor with over a decade of experience navigating the volatile digital asset market, I find Dark Defender’s bullish forecast for XRP to be particularly compelling. Having weathered multiple market cycles and witnessed countless price movements, I can attest that technical analysis plays a crucial role in predicting price trends.
The crypto expert Dark Defender (@DefendDark) has given an optimistic prediction for XRP, estimating it could rise above $5.85 due to a combination of technical signs and chart patterns. Although the market has been slow lately, this analyst points out several crucial elements—like employing Elliott Wave theory—that hint at a substantial price increase may be coming soon.
Why XRP Looks Still ‘Super Bullish’
As an analyst, I’ve observed that Dark Defender’s analysis suggests the current XRP price movement is influenced by three key trend lines. Two of these lines create a symmetrical triangle pattern, while the third—a prolonged downward slope, colored orange—represents a long-term bearish trend. Interestingly, we’ve recently seen XRP break above this downward trend on the monthly chart, indicating a potential shift in the market dynamics for XRP.
As an analyst, I’ve noticed a symmetrical triangle forming over the past four years in the XRP market, defined by two converging trendlines. This pattern is often seen as a consolidation phase within a larger trend, suggesting that once broken, prices may continue moving in the direction of the prevailing trend. Despite several attempts, the price of XRP has yet to successfully break upward within this triangle.
Since last summer, the orange, sloping trendline dropping downwards has served as a notable barrier for XRP‘s price increase. However, recently, XRP managed to surge beyond this prolonged downtrend line on its monthly chart, which is an optimistic indication for bullish investors. This breakout implies a possible change in market opinion from negative to positive, possibly triggering significant growth in the coin’s value.
As an analyst, I consistently incorporate the Elliott Wave theory into my analysis of XRP‘s price movements. The chart I’ve presented illustrates an Elliott Wave count that indicates we might be on the brink of a potent Wave 3 impulse move for XRP. This wave is known for being the most robust and extended within the five-wave trend sequence, historically.
In this situation, it’s being proposed that XRP has finished its second wave, a period of correction with declining prices, and is now moving into its third wave. This phase is typically associated with substantial growth and heightened interest from market participants, which could account for the expected rise beyond $5.85.
According to technical analysis, the anticipated goal coincides with potential Fibonacci extension points often linked with Wave 3 surges, serving as a foundation for the potential substantial rise in XRP‘s price. Presently, the 70.2% Fibonacci price mark at $0.6649 is vital resistance that needs to be breached for wave 3 to become confirmed. If this hurdle is overcome, we could see the first significant extension aiming towards the 161.8% Fibonacci level at $1.88. The maximum potential target could reach the 261.8% Fibonacci level at $5.85.
According to Dark Defender’s analysis, the average price of Heikin Ashi candles (average-price candles) currently sits at $0.57 on the monthly chart. He emphasizes that this average price staying above the critical support level indicates XRP is likely to maintain its momentum.
Moreover, the Moving Average Convergence Divergence (MACD) indicator on a monthly basis shows a bullish signal with a green dot. This suggests an upward trend gaining strength due to increasing momentum. The MACD is a valuable tool for traders as it helps identify possible trend changes. A green dot usually means that the MACD line has moved above the signal line, signifying a positive shift in directional movement.
In essence, Dark Defender posits that the price fluctuations of XRP are primarily influenced by its own technical patterns and indicators, rather than external news events like the SEC lawsuit against Ripple. Although he concedes that such news might exert a small influence, he maintains that it’s the technical aspects that predominantly drive XRP’s price movements.
Following the appeal decision, as anticipated by many, there was no significant event regarding XRP. The cryptocurrency had reached the upper levels of the Ichimoku clouds at around $0.60+ and subsequently bounced back to $0.50+. Dark Defender remains optimistic about this; he consistently emphasizes that XRP is not influenced by SEC news, though they do have a minor effect.
According to the technical indicators discussed – such as the rise above the long-term downtrend, the impact of the symmetrical triangle, the relevance of the Heikin Ashi monthly average price, positive MACD signals, and the Elliott Wave projection – Dark Defender is highly optimistic about XRP. This analyst expects the asset’s price to align with past trends and potentially surpass $5.85.
At press time, XRP traded at $0.53.
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2024-10-10 02:10