2024-11-15 04:30 |
In a new analysis, crypto analyst Dark Defender (@DefendDark) highlights a significant pattern in the daily XRP/USDT chart that suggests a possible sharp rise in the price of XRP. According to his analysis, the XRP price is possibly forming a technical pattern known as a “bull flag” after decisively breaking above the multi-year resistance at $0.6649, a move that has been further substantiated by two consecutive daily closes above this key level.
XRP Price To Reach $1.03 This Week?A “bull flag” pattern occurs when the price of an asset moves sharply higher, then consolidates in a narrow, downward-sloping range, resembling a flag on a pole. This pattern is typically considered a continuation pattern, suggesting that after the consolidation phase, the price is likely to break out upward in the direction of the initial sharp movement. In the context of XRP, the flagpole was formed by the steep price increase from $0.52 leading up to the break above $0.6649.
Furthermore, Dark Defender points out the Relative Strength Index (RSI), which is currently in the overbought territory at 84. An overbought RSI often indicates that the asset might temporarily pause or consolidate due to short-term selling pressure as traders take profits.
This aligns with the expectation of the consolidation phase of the bull flag pattern. However, an overbought RSI in the context of a bull flag pattern can also indicate strong underlying momentum, suggesting that once consolidation is complete, a breakout to the upside could follow.
Dark Defender highlights the next substantial price target at $1.03, which could be achieved swiftly if XRP manages to ascend beyond the immediate resistance near $0.7496. Specifically, touches or minor closings above $0.7496, with potential surges to $0.76 or higher, are deemed critical for this bullish scenario to unfold. Should these conditions be met, Dark Defender expects that the price of XRP could rally to $1.03 within this week.
Notably, the analysis also rests on the understanding of Fibonacci levels, which are used extensively in crypto trading to predict potential support and resistance levels based on prior market movements. The level at $0.6649, now surpassed, could likely serve as a 70.20% retracement from the previous market high to low.
If this level is breached to the downside, the bull flag pattern could extend more to the downside. Then, the 61.80% and 50% Fibonacci levels at $0.6044 and $0.5286 could serve as a support zone from which the XRP price could escalate above $1.
The analyst states: “XRP closed 2 days in a row above $0.6649. Now we can say this Fibonacci Level is dead, too. There are no more substantial levels than this until $1.03. If we see touches above $0.7496, such as $0.76 or more, we can quickly expect the $1.03 this week.This is not financial advice but my expectation. Remember, XRP broke the multi-year (7) resistance of $0.6649 in NOVEMBER 2024.”
At press time, XRP traded at $0.7086.
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