Crypto analyst Dark Defender (@DefendDark) has recently made a bullish forecast for XRP, predicting a price surge above $5.85 based on a combination of technical indicators and chart patterns. Despite the recent stagnation in the market, the analyst highlights several key factors that point towards a significant upward movement in the near future.
Why XRP Looks Still ‘Super Bullish’
Dark Defender’s analysis indicates that the current XRP price is influenced by three trend lines. Two of these trend lines form a symmetrical triangle pattern, while the third, a downward-sloping orange line, represents a long-term downtrend that XRP has recently broken above on the monthly chart.
The symmetrical triangle, which has been formed by two converging trendlines, signifies a 4-year long consolidation period. This pattern is typically seen as a continuation pattern, suggesting that the price is likely to continue in the direction of the existing trend after a breakout. XRP has attempted to break to the upside multiple times without success.
The breakthrough above the long-term downtrend line on the monthly chart is a strong bullish signal for XRP, indicating a shift in market sentiment from bearish to bullish and potentially leading to significant price appreciation.
Dark Defender’s analysis also incorporates Elliott Wave theory, with the chart displaying an Elliott Wave count indicating that XRP is set to enter a Wave 3 impulse move. Wave 3 is historically the most powerful and extended wave in the five-wave trend sequence, characterized by strong momentum and increased market participation.
The analyst believes that XRP has completed Wave 2, a corrective phase marked by downward price movement, and is now entering Wave 3. This wave is often associated with significant price movement, explaining the projected surge above $5.85.
The projected target aligns with Fibonacci extension levels commonly linked to Wave 3 movements, providing a technical basis for the anticipated price increase. In the short term, the 70.2% Fibonacci price level at $0.6649 is a crucial resistance for XRP. Breaking this barrier could confirm Wave 3, with the first major extension target at the 161.8% Fibonacci level of $1.88 and the ultimate target at the 261.8% Fibonacci level of $5.85.
The Heikin Ashi candles, averaging at $0.57 on the monthly chart, are also highlighted by the analyst. Dark Defender notes that the monthly average price staying above the support level is critical for XRP to maintain its momentum.
Additionally, the Moving Average Convergence Divergence (MACD) indicator on the monthly timeframe has shown a green dot, signaling increasing upward momentum. The MACD is a momentum oscillator that helps identify potential trend reversals, with a green dot indicating a positive shift in momentum.
Dark Defender emphasizes that XRP’s price action is primarily driven by technical patterns and indicators, rather than external news events such as the SEC lawsuit against Ripple. While external news can have a minor impact, the analyst argues that technical factors play a more significant role in XRP’s movements.
Based on the technical analysis provided, Dark Defender remains “super bullish” on XRP and anticipates that the asset will follow historical patterns leading to a price exceeding $5.85. As of the latest update, XRP is trading at $0.53.
Featured image created with DALL.E, chart from TradingView.com