Technical analysis of XRP price has revealed the creation of corrective waves in light of the recent correction since December 3. Notably, the cryptocurrency now trades between crucial Fibonacci levels that could be correcting itself for a while longer. With the help of these Fibonacci levels, crypto analyst Dark Defender shared information on social media platform
XRP tests Fibonacci levels amid market correction
According to the XRP chart below, which was featured for the first time On cryptocurrency analyst Dark Defender’s Fibonacci of 261.80%. However, this impressive high was short-lived as the token faced a correction that saw its price fall to support at $2.17. Notably, this support is also just above the 161.80% Fibonacci extension level at $2.13, which is now a critical point for XRP price going forward.
With this in mind, Dark Defender noted that both $2.92 and $2.17 are the most important price levels to watch at the moment. The rebound from $2.17 suggests that the correction may be bottomingand its analysis points to a transition to Wave B in the daily time frame.
What to expect during wave B
Speaking of Wave B, this analysis is based on a pattern of three corrective waves. This pattern, which comprises three distinct phases, waves A, B, and C, has been repeated repeatedly during the XRP price rally. Within this structure, waves A and C represent downward trends, while wave B reflects an upward movement. If this corrective pattern were to be repeated, the price of XRP could experience a rise to $2.92, corresponding to the 261.80% Fibonacci extension level, before another downtrend potentially leads it to retest support at $2.13, the 161.80% Fibonacci extension level.
As Dark Defender noted, it may take a couple of days to get rid of this structure. This means that XRP price could continue to trade between these levels before any decisive move up or down.
Recent market factors suggest an upward breakoutwhich would send the price of XRP back to new multi-year highs. At the time of writing, the price of XRP is trading at $2.37, having increased by 2.9% in the last 24 hours.
One factor that contributes to this optimism is the Paul Atkins nomination by President-elect Donald Trump to lead the SEC. Atkins is widely regarded as cryptocurrency-friendly, and his potential leadership could mark the end of the long-running legal dispute between the SEC and Ripple. Such a resolution would likely invite significant institutional and retail entries into the XRP ecosystem.
Fountain: NewsBTC.com
