The consolidation phase between $0.6649 and $0.3917 ended the corrective phase and set the stage for the anticipated third wave. Notably, the transition into wave 3 aligns with a ‘higher low’ formation on the RSI.
In a new technical analysis published on X, crypto analyst Dark Defender (@DefendDark) is projecting a highly bullish future for the XRP price. He leverages the Elliott Wave Theory to suggest a potential surge to $18.22 in what he anticipates to be the third wave of a major bullish cycle. This analysis is backed by a detailed review of XRP’s price movements, key support levels, and technical indicators on the weekly chart.
Why XRP Price Is Poised To Hit $18
The Elliott Wave Theory posits that market prices unfold in specific patterns, referred to as waves. According to this theory, a typical cycle includes five waves, with waves 1, 3, and 5 being impulse waves that move in the direction of the overall trend, and waves 2 and 4 being corrective waves that move against it. The third wave is often the most dynamic and achieves the greatest price distance.
Analyzing the XRP chart, Dark Defender points out that XRP has completed its first and second waves. The first wave saw a significant upward trend. XRP surged as high as $0.93 in July 2023, followed by a downward correction in the second wave, which is typical in Elliott Wave formations. The second wave brought the XRP price below the $0.39 mark in July 2024, which marked the bottom.
The process that began at $0.6649 concluded the rectifying phase, preparing the groundwork for the forthcoming third wave. Significantly, moving to wave 3 conforms with a ‘more favorable’ structure according to the Rapid Saline Infusion (RSI).
A higher low on the RSI during a corrective wave (wave 2) suggests underlying strength and typically precedes a strong upward movement, signaling that the price has maintained higher relative bottoms despite the correction. This formation is seen as a bullish signal by Dark Defender, reinforcing the potential onset of wave 3.
Dark Defender’s analysis includes critical Fibonacci extension levels that serve as potential targets and resistance levels in the bull run. The 23.60% Fibonacci retracement level at $0.3917 and the 50.00% at $0.5286 served as significant support during the corrective phase. With the XRP price currently trading around $0.56, the next price target is at $0.6649 (70.20%).
These levels are crucial as they represent intermediate resistances that XRP has faced and must surpass to confirm the bullish trend. The $0.6649 level is highlighted by the crypto analyst as particularly significant, marking the upper boundary of past consolidation.
Dark Defender has pointed out that it’s been quite some time since XRP has been stuck within a range between roughly $0.6649 and $0.3917. In the weekly perspective, Relative Strength Index (RSI) valleys have mirrored price dips. Currently, there’s a golden cross occurring in the weekly RSI. Dark Defender has repeatedly highlighted the significance of the $0.6649 level. This key level, situated above the weekly Ichimoku clouds, is an essential milestone to reach before any potential surge can occur.
As the price progresses, the 100.00% Fibonacci level at $0.9327 represents a full recovery and doubling from some of the lowest recent prices, setting a baseline for the next impulse wave. The extended Fibonacci levels at 161.80% and 261.80%, equating to $1.8815 and $5.8563 respectively, are higher bullish targets that could be reached in a strong market upswing.
Dark Defender suggests that we might be experiencing a repeat of the 2017 crypto market surge, as we currently seem to be on the brink of an XRP bull run. If this pattern holds true, the peak target for wave 3, which translates to approximately $18.22 based on a Fibonacci level of 361.80%, could mark the upper limit of this run. It would indeed be fascinating if these predictions materialize.
At press time, XRP traded at $0.5672.
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2024-09-03 15:05