Crypto Analyst Highlights Why XRP Price Is Ready For Takeoff
06 February 2024 - 8:00PM
NEWSBTC
In a technical analysis, crypto analyst Dark Defender has provided
a bullish perspective on the XRP price action, indicating that the
cryptocurrency is on the cusp of a potential breakout. The analysis
presented is based on a daily chart that encapsulates several
advanced technical indicators and theories. Why A XRP Price
Breakout Is Imminent The core of Dark Defender’s analysis is the
completion of a five-wave corrective structure, as posited by
Elliott Wave Theory. This theory suggests that markets move in
repetitive cycles, with the five-wave pattern indicating a
correction following a larger trend. In XRP’s case, the waves
numbered (1) to (5) illustrate a complete correction within a
larger bullish context. The implication is that the completion of
this pattern could lead to the start of an impulsive, upward wave
sequence. Dark Defender points to the critical support level at
$0.4623, a value derived from Fibonacci retracement analysis.
Fibonacci retracements are based on the idea that markets will
retrace a predictable portion of a move, after which they will
continue to move in the original direction. The $0.4623 level
appears to be a strong area of buyer interest, representing a
potential reversal zone. Related Reading: XRP Price Retreats To
$0.50 As Whale Unloads 30 Million Tokens – Details On the
resistance side, two levels are highlighted. The first is set at
$0.5286, which is the 50% retracement level from the previous high.
This price point acts as an interim hurdle for XRP’s price, serving
as a barometer for short-term sentiment. A more significant
resistance is noted at the 70.2% Fibonacci level of $0.6649. A
break above this level could be a strong indication of bullish
momentum and may attract further buying interest. The chart also
incorporates the Ichimoku Cloud, which is currently acting as
dynamic resistance. The Ichimoku Cloud is a multifaceted indicator
that provides information on support and resistance, trend
direction, momentum, and buy or sell signals. A decisive breakout
above the cloud would suggest a change in trend favoring the bulls.
Remarkably, the Ichimoku Cloud aligns with a descending trend line
(red line). A break above both indicators could spell strong
bullish momentum. Related Reading: WHAT IS XRP LEDGER (XRP)?
Another compelling aspect of the analysis is the RSI breakout and
subsequent retest. The RSI is a momentum oscillator used to
identify overbought or oversold conditions. In XRP’s case, the RSI
had previously been in a downtrend, indicating persistent selling
pressure. However, the recent ‘break and back test’ pattern in the
RSI, where the price breaks through a resistance level and then
retests it as support, demonstrates a potential shift in momentum
from bearish to bullish. Dark Defender’s analysis indicates that
the combination of a completed corrective structure, a supportive
RSI movement, and the challenge of key Fibonacci levels suggests
that XRP is primed for an upward trajectory. His closing statement,
“And come on, XRP, it is time for you to Move!” encapsulates the
anticipation of a bullish phase for XRP in the near future. At
press time, XRP traded at $0.50261. Featured image created with
DALL·E, chart from TradingView.com
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