This article is also available in Spanish.
In line with the widest market trend, the XRP price has dropped almost -35% since its peak of mid -January to $ 3.40, but according to analyst Dark Defender (@DefendDark), the downward trend can soon get to its conclusion. In his last technical analysis, he highlights That XRP is ending an ABC correction pattern within the daily period, backed by the fact that the relative force index (RSI) approaches the conditions of oversight. This could indicate an imminent trend investment that leads to a new structure of bullish waves.
ABC correction is a standard pattern in Elliott’s wave theory, which represents a three -wave corrective movement that follows an impulsive rally. The wave typically begins the first decrease, the B wave sees a temporary rebound and the C wave marks the final leg down, often establishing a significant background. In the case of XRP, the Dark Defender table suggests that Wave C is about to finish, which means that the asset can soon be ready for a new impulsive upward trend.
Where does the XRP price go?
From a technical perspective, XRP approaches the key support levels between $ 1.88 and $ 1.91, which could act as a solid base for reversal. If the price action confirms a fund around this area, the next phase could imply a bullish breakdown aimed at various important levels of resistance. The first key resistance is at $ 2.44, which should be broken to confirm a trend change. Above that, the $ 2.99 zone becomes a critical obstacle before a possible rally around $ 5.85, a level aligned with Fibonacci extensions.
Related reading
When observing additional indicators, the RSI within the daily period is close to over -sales conditions, a historically reliable sign that suggests that the sale of impulse can be exhausted soon. A strong rebound of this area would reinforce the case of a bull reversal. In addition, the graph shows that XRP has been forming a descending wedge pattern, a structure that is commonly associated with upward sprouts. A decisive movement above the wedge resistance trend line could provide the necessary confirmation for the start of a new Elliott wave cycle.
Dark Defender projects that, once the correction phase is completed, XRP could begin a five-wave impulsive structure aimed at a movement towards $ 3.00 in wave 1, followed by a brief setback before an extended rally to $ 5.00- $ 5.85 in the 3 wave. Fibonacci in third place.
Related reading
For merchants who observe the action of the XRP price, the resistance levels of $ 2.44 and $ 2.99 will be critical. A rupture above these areas would confirm the beginning of an upward bullish trend, while the lack of possession of the support range of $ 1.88 – $ 1.91 could indicate a higher downward risk. With impulse indicators that point towards the exhaustion in the sale pressure, an investment seems increasingly likely, which makes this an important period for the XRP market structure.
“XRP is close to finishing the ABC correction pattern in the daily time frame, considering the lowest RSI figures. RSI is near the overall area. The first expected wave will be $ 3, and our goal will be between $ 5 and $ 8, with Wave 3-5, ”concludes Dark Defender.
At the time of publication, XRP quoted at $ 2.21.
Outstanding image created with Dall.E, Record of TrainingView.com
