XRP Price Crash: Analyst Says Don’t Get Distracted As RSI Is Still Above A Bullish 50%

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As a seasoned crypto investor with a decade of experience in this ever-evolving market, I find myself constantly analyzing trends and making informed decisions based on technical indicators. The recent analysis of XRP‘s price action has piqued my interest, given its current consolidation phase following the break of key resistance levels.

Experts are saying that after reaching new highs by breaking important resistance points, the cost of XRP is now stabilizing or consolidating. However, a crypto expert has cautioned about an upcoming drop in XRP’s price, encouraging investors not to lose focus since the Relative Strength Index (RSI) remains considerably above 50%. By examining both short-term and long-term charts of XRP, this analyst predicts that the cryptocurrency is still following a bullish trend, although temporary adjustments are expected.

XRP Price RSI Hints At Potential Crash

On the 4-hour XRP graph, a double peak formation stands out on the Relative Strength Index (RSI), a tool that gauges the pace of a cryptocurrency’s price changes. Often, this double tap configuration suggests more price drops followed by a period of price leveling off.

Based on Dark Defender’s analysis as a crypto expert on X (previously Twitter), repeated dips of RSI into oversold territory suggest that XRP might plummet to fresh lows in terms of price. The analyst revealed that the XRP price had previously encountered robust support at $2.17; nonetheless, the cryptocurrency has shown a rebound towards higher prices.

Following reaching this key support point, the XRP price is currently holding steady, which typically indicates a possible upcoming rise following a downtrend correction. However, even with the minor market rebound, the analyst has issued a caution about another potential price drop in the same support area as the RSI nears oversold territory again.

Recently, in December, the Relative Strength Index (RSI) for XRP dropped below 30%, indicating it was overbought. Now, the RSI for XRP has risen above 50%, suggesting there could be an upcoming price adjustment between the support levels of $2.17 and $2.18. As per Dark Defender’s analysis, this price drop may happen soon as XRP is predicted to reach oversold territories within a day.

Despite a possible drop in price, the analyst maintains a positive overall view on XRP, expecting its upward trend to continue once the market stabilizes after dipping to new lows. Additionally, Dark Defender forecasts that the price of XRP could potentially rise above $3 following this projected correction, representing nearly a 40% increase from the current support level at $2.17.

XRP 3-Month Chart Signals Strong Bullish Set Up

Based on his forecasts suggesting a potential drop in XRP prices due to oversold conditions, Dark Defender additionally presented a 3-month chart analysis, offering a more optimistic perspective for the cryptocurrency. The chart indicates that XRP has recently breached a long-standing resistance level for the first time in approximately five years, indicating a significant bullish trend.

In simpler terms, the strong buying interest observed between October and December, as indicated by the three-month green candle structure, suggests a positive outlook for the first quarter of 2025 (January to March). This period might witness a bullish trend. Additionally, the XRP chart over the past three months shows a rounded bottom pattern, which is typically a sign of a gradual shift from a declining trend to an ascending one, implying a potential bullish reversal.

As a researcher, I’ve noticed that Dark Defender has identified several Fibonacci levels as potential price targets for XRP. The analyst suggests that XRP could experience a significant 261.80% increase, potentially reaching the $5.8563 level from its current range of $5 to $9. Following this rise, there’s an anticipated 361.80% growth, propelling the price to the $18.2275 Fibonacci level between $16 and $28. It’s also important to note that the analyst has pinpointed the $0.9 support level, which corresponds to the 0.6649 Fibonacci level. This could serve as a safety net for XRP during any price corrections or downturns.

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2024-12-21 06:40