This article is also available in Spanish.
Crypto analyst Dark Defender (@DefendDark) issued a bullish forecast for XRP, predicting a price rise above $5.85 based on a combination of technical indicators and chart patterns. Despite the market’s recent position, the analyst highlights several key factors—including the use of the Elliott Wave theory—that suggest a significant upward movement is imminent.
Why XRP Still Looks ‘Super Bullish’
According to Dark Defender, the price of XRP is currently determined by three trend lines. Two of these trend lines form an equilateral triangle pattern, while the third—the descending orange line—represents the long-term decline that XRP recently broke above on the monthly chart.
Related Reading
An equilateral triangle, formed by two inverted lines, shows a long 4-year consolidation period. This pattern is generally considered a continuation pattern, which means that the price is likely to continue in the direction of the existing trend when the breakout occurs. In the case of XRP, the price has tried to jump several times – so far without success.
The third trendline, the descending orange line, has been serving as an important resistance level for XRP since the summer of 2021. The fact that XRP broke above this long-term downtrend line on the monthly chart is a strong bullish signal. This breakout suggests a shift in market sentiment from bearish to bullish, which could lead to a significant price drop.
Central to Dark Defender’s analysis is the application of the Elliott Wave theory to XRP’s price action. The chart shared by the analyst shows the Elliott Wave calculation which suggests that XRP is ready to enter the Wave 3 movement, which is historically the strongest and most extended wave of the five-wave trend sequence.
In this context, the analyst believes that XRP has completed Wave 2-a correction phase characterized by downward price movements-and is now starting Wave 3. This wave is often characterized by strong momentum and an increase in market participation, which may explain the increase expected above. $5.85.
The proposed target coincides with Fibonacci expansion levels that are often associated with Wave 3 movements, providing a technical basis for significant price increases. In the short term, the 70.2% Fibonacci retracement at $0.6649 is the most important resistance for XRP. If this barrier is broken, wave 3 can be confirmed. The first major target for the extension will be the 161.8% Fibonacci retracement at $1.88. A key target would be the 261.8% Fibonacci retracement at $5.85.
Related Reading
The analyst also points out that the Heikin Ashi candles are currently around $0.57 on the monthly chart. “When considering the Heikin Ashi candles (minimum price candles, currently at $0.57), the monthly average price remains above the support level, which is important for XRP to continue its momentum,” Dark Defender noted.
Additionally, the Moving Average Convergence Divergence (MACD) indicator in the monthly timeframe has printed a green dot, a bullish signal that suggests rising momentum. MACD is a bullish oscillator that helps traders identify potential trend reversals. A green dot usually indicates that the MACD line has crossed above the signal line, indicating a positive momentum shift.
Finally, Dark Defender argues that XRP’s price action is largely independent of external news events, including developments related to the SEC’s case against Ripple. Although he admits that such news can have a small impact, the analyst argues that technical patterns and indicators play a major role in the movement of XRP.
“As many expected, nothing happened after the appeal decision. XRP recently topped the Ichimoku clouds around $0.60+ levels and jumped from there to $0.50+. I’m Bullish; why? As I always highlight, XRP does not follow any issues like the SEC. OK, they have a small effect, but still,” Dark Defender commented.
Based on the mentioned technical characteristics-including the breakout above the long-term downtrend line, the significance of the symmetrical triangle, the significance of the monthly Heikin Ashi price, bullish signals from the MACD, and the Elliott Wave count-Dark Defender is “super bullish” on XRP. The analyst expects that the stock will follow historical patterns leading to a price above $5.85.
At press time, XRP traded at $0.53.
The featured image was created with DALL.E, a chart from TradingView.com
Source link