In a recent technical analysis update, the crypto analyst known as Dark Defender provided insights into the price movements of XRP against the US dollar. The analyst employs the Elliott Wave Theory to dissect the price movements of XRP. This approach, rooted in the psychological patterns of market participants, illustrates price trends through a distinct 5-3 wave cycle.
This includes five waves following the primary trend direction and three corrective waves. According to Dark Defender, XRP is exhibiting an uptrend since January of 2023, undergoing an “ABC” correction phase from November 2023 to February 2024. This phase set the stage for a new bullish wave sequence.
Hi all. I hope you had a great weekend.
Let’s first check our previous pattern & update it.#XRP strolling strictly around our Fibonacci level at $0.6462. The lines are clear & accurate.
Checking MACD, Ichimoku & RSI indicators, XRP is expected to continue the uptrend as we… pic.twitter.com/fetf2IH7nl
— Dark Defender (@DefendDark) March 4, 2024
XRP Price Eyes $1 By End Of March
The current market dynamics of XRP are encapsulated in a wave pattern marked from (1) to (4), as per Elliott Wave principles. The initial wave peaked on February 16, 2024, reaching close to $0.58, showcasing a strong market sentiment as the subsequent second wave’s retracement was modest, halting at $0.525 rather than fully reverting to the starting point of wave (1).
XRP is currently navigating through Wave (3), which is often the longest and most powerful, indicating a potential surge towards the $0.81 mark. The forthcoming Wave (4) is expected to be corrective, with a projection of a dip to around $0.75, leading into a final thrust in Wave (5) targeting the $0.9191 to $1 range by late March.
Notably, Dark Defender’s analysis also incorporates Fibonacci retracement levels, further refining the predictive accuracy by identifying potential market support and resistance points. The price of XRP has recently surpassed a significant resistance level, which was previously identified as a downtrend line (red) stemming from point (B) on the chart.
This breakout indicates a strong bullish signal, as the resistance turned into a support level. Dark Defender highlighted that the resistance has been “Eliminated,” suggesting that prior price ceilings are no longer restricting upward movement.
However, a notable challenge lies ahead with the 161.8% Fibonacci level at $0.6462, which has already repelled the price on several occasions. Overcoming this barrier is crucial for sustaining Wave (3)’s momentum. The analysis forecasts an ambitious breach above the 261.8% Fib level at $0.7707 during Wave (3), albeit with an anticipated correction below this threshold in Wave (4), using the November 2023 high as a pivotal support marker.
For traders, these insights underscore the importance of monitoring Fibonacci levels and wave patterns to gauge future movements. Nonetheless, the subjective nature of wave analysis necessitates corroborative evidence from other technical indicators for a holistic market outlook.
To this end, Dark Defender has referenced additional technical tools, including the Moving Average Convergence Divergence (MACD), the Ichimoku Cloud, and the Relative Strength Index (RSI). Although the analysis does not visually detail these indicators, the commentary suggests that all three support a continued bullish trend for XRP, reinforcing the prediction of an ongoing uptrend. He stated, “Checking MACD, Ichimoku & RSI indicators, XRP is expected to continue the uptrend as we predicted.
At press time, XRP traded at $0.65216.
Featured image from Shutterstock, chart from TradingView.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Leave a Reply