2024-9-3 15:00 |
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 $18The 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 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.
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.
“It has been a long time since XRP has been consolidating between $0.6649 & $0.3917. In the weekly time frame, RSI dips formed parallel with the price dips. Weekly RSI golden cross is in place. We have consistently emphasized the importance of the $0.6649 level. This level, which is above the weekly Ichimoku clouds, is a crucial marker that must be in place before the run,” explained Dark Defender via X.
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.
The ultimate price target for wave 3, represented by the 361.80% level at $18.22, would signify an extraordinary rise, reminiscent of the dramatic gains seen in the 2017 crypto bull market. “We are having a deja vu of 2017 by standing weeks in front of the XRP bull run. If a similar run is in place, $18.22, (NFA) the Fibonacci level of 361.80%, is expected to be the upper target level of wave 3. It will be great to see all these will come through,” concluded Dark Defender.
At press time, XRP traded at $0.5672.
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