Renowned crypto analyst “Dark Defender” has forecasted a short-term bullish movement for the XRP price, with expectations that the cryptocurrency might hit the $0.66 mark this week. Sharing his insights on Twitter, the analyst referenced XRP’s 1-day chart, highlighting recent price dynamics and key technical indicators.
“Hi there. XRP in the daily chart broke the initial resistance & back-tested it. We had a similar move on 13-Jul-23. The next Fibonacci level stands at exactly $0.6649. If we don’t see XRP below $0.50 support, we expect to hit $0.66 this week,” the analyst tweeted.
A Deep Dive Into The XRP Price Analysis
The chart presented by Dark Defender shows that on September 29, XRP experienced an upward breakout from an ascending triangle. The XRP price increase by 8% was driven by market participants’ expectations of Ripple’s Proper Party. Although “major news” failed to materialize, the price of XRP still managed to stay above the trend line.
Historically, ascending triangles are considered continuation or consolidation formations, indicating a potential resumption of the previous trend following a brief period of consolidation. Given XRP’s upward trajectory since January, this breakout suggests the possible continuation of its bullish trend.
As Dark Defender highlights, the cryptocurrency underwent a back-test over the subsequent three days, a process the crypto asset has so far confirmed. If the asset sustains above the $0.50 mark, it would successfully clear the back-test as per Dark Defender’s analysis.
Drawing a parallel to the past, Dark Defender pointed out a similar price behavior on July 13. That day marked the release of the summary judgment in the lawsuit between Ripple Labs and the US Securities and Exchange Commission (SEC).
Amid this backdrop, XRP broke out of its consolidation phase, triggering an almost 100% price rally. Remarkably, the Relative Strength Index (RSI) entered a cooling phase after a brief surge to 74 in late May. The eventual upside break of this descending trend in RSI coincided with XRP’s significant rally.
Observing the recent chart behavior, Dark Defender noted that the RSI’s extended trendline was once again broken upwards last Friday. Although there wasn’t a significant news catalyst from Ripple to push XRP’s price dramatically, an RSI trendline back-test occurred in recent days. If this is confirmed, it could signal a surge toward the “next” Fibonacci level at $0.66 as mentioned by the analyst.
Long-Term Price Targets
Dark Defender, in a tweet from October 1, expressed optimism about the XRP price trajectory, specifically highlighting its recent close with a doji candle pattern in September. He remarked, “XRP closed the September candle with a doji. I take this positive, as always, and expect a re-test towards $0.66 in a couple of days.”
Expanding on this observation, Dark Defender suggests that if XRP breaks the $0.55 threshold, it will gain significant momentum. This is due to the asset potentially positioning itself above the weekly Ichimoku Clouds, a scenario he views as very bullish. Following this, he anticipates:
[…] We proceed with the second resistance at $0.91 (Yellow Resistance) will be broken above $0.66, and XRP will directly proceed with $1.33. Above $1.8815 (In Violet :)), we will discuss –> New All-Time High, possibly at $5.85 at first!
At press time, XRP traded at $0.50797. After the price was rejected at the 23.6% Fibonacci retracement level at $0.5272, the cryptocurrency is now looking for support at the 38.2% Fibonacci retracement level at $0.5083 on the 4-hour chart.
Featured image from Top1 Markets, chart from TradingView.com