In a recent technical evaluation of the XRP price on the weekly chart (XRP/USD), cryptocurrency analyst Dark Defender warns of a possible final significant downturn. The evaluation employs the Elliott Wave theory and examines the historical and anticipated trajectories for XRP, highlighting crucial price thresholds and wave formations.
Is a Final Crash Imminent for XRP Price?
Dark Defender believes that XRP wrapped up its Wave 1 at a peak of $0.9327 in mid-July last year, greatly exceeding the initial predictions made when the price was merely $0.28. “Those who know, know, that we aimed for $0.89 and higher when XRP was at $0.28. Still, XRP completed Wave 1 at $0.9327. So, we haven’t finalized that yet, right? We establish limits and objectives and then observe outcomes. Following the initial target, XRP began consolidating,” Dark Defender remarked.
The chart analysis indicates that after reaching a peak, the price stabilized at $0.3917, a level that was nearly touched at $0.3814, emphasizing the precision of the anticipated support levels derived from the Elliott Wave theory. “We all acknowledged that our minimum target was $0.3917, which we established. Subsequently, XRP nearly exactly reached $0.3814. We repeatedly noted that this range was the lowest Fibonacci zone,” the analyst stated.
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Regarding more recent developments, Dark Defender highlighted the $0.6649 level, describing it as an “extraordinary threshold” and “the strongest of all.” The analyst expressed, “Once we see XRP surpassing $0.66 for a day, a week, or a month, we will witness significant movements.”
Nevertheless, the latest weekly Wave indicator shows a red signal, indicating potential downward pressure. Dark Defender advises investors, “Currently, the weekly indicator presents a red signal, which may prove inaccurate but serves as a reminder to consider the support levels of $0.5286, $0.4850, and the least likely $0.3917 for a double dip.”
Even though there is a possibility for a drop, Dark Defender believes the chance is minimal. “Can XRP revisit this level again? Yes, but it’s less probable.” Despite the immediate bearish indication, the monthly wave trend remains positive, typically superseding the weekly indicators, which implies that the red signal could be hasty.
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“Although the weekly indicators are showing red now, the monthly wave trend is also green, which takes precedence. This leads me to suspect that the weekly signal might be misleading at this point,” the analyst elaborates, bolstering the notion of continued bullish momentum in the long run.
Notably, the wave indicator also provided false signals on the weekly chart during the initial wave, reinforcing Dark Defender’s long-term hypothesis. He maintains that XRP’s Wave 3 “possible targets are at $0.88, $5.85, and $18.22 respectively.”
However, for XRP to soar to those heights, there is one last significant barrier to overcome. “Provided that $0.48 and particularly $0.3917 remain intact, XRP’s targets are well-defined, especially after surpassing $0.6649. Please don’t underestimate or dismiss what $0.66 represents. It’s the fine red line. We’re aware of what’s unfolding behind the scenes. Not many remain committed, that’s evident. But I have faith in myself, Ripple, and XRP. Exciting times lie ahead,” he asserts.
As of this writing, XRP was trading at $0.5302.
Featured image created with DALL.E, chart from TradingView.com
