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Recent technical analysis has revealed that XRP price is consolidating after breaking key resistance levels to new highs. A crypto analyst has it he warned in the future XRP price crashurges investors not to get distracted as the RSI is still well above 50%. Discussing his short and long term predictions XRP price chartsthe analyst indicates that the cryptocurrency is firmly fixed in a bullish trend despite the upcoming correction.
XRP Price RSI Hints Possible Crash
On the 4-hour XRP chart, the double tap structure is highlighted in Relative Strength Index (RSI)a technical indicator used to measure cryptocurrency momentum. This double tap pattern usually indicates a downward movement that continues before a price stability.
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According to Dark Defender, a crypto analyst on X (formerly Twitter), the retracement of the RSI dipped in the oversold zone indicates that XRP may have a price drop to a lower level. The analyst revealed that the price of XRP had previously received strong support for $2.17; however, the cryptocurrency experienced an upward jump.
After hitting this support level, the The price of XRP is now inclusivea pattern that is often associated with potential increases after correction. Despite the small market renewalthe analyst warned of another price crash to come at this same support area as the RSI approaches oversold levels again.
Earlier in December, the RSI hit oversold areas after being submerged below 30%. Now the RSI of XRP is above 50% and shows the potential for a price correction between the support levels at $2.17 and $2.18. Dark Defender revealed that this price crash could happen soon as XRP is expected to enter oversold territory during the day.
Despite this potential price correction, the analyst agreed that the broader outlook for XRP still looks bearish, with a continuation of the uptrend expected once the market consolidates following the perceived price decline to new levels. Dark Defender also predicted that The next price target for XRP after this speculative correction it is likely to be above $3, marking an increase of almost 40% from the support area of ​​$2.17.
Strong XRP 3-Month Chart Signals Set
After his prediction that the price of XRP could crash as it enters oversold conditions, Dark Defender also shared his 3-month chart analysis, painting a clear vision of cryptocurrency. The chart shows that XRP has just broken a multi-year resistance level for the first time in more than five years, indicating a strong bullish trend.
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The structure of the green candle for the three months between October and December is reassuring strong buying pressureit sets the stage for Q1 2025 which could be strong from January to March. A circular bottom pattern it can also be seen on the 3-month XRP chart. This pattern is a classic bullish reversal structure that shows a gradual movement from a downtrend to an uptrend.
Dark Defender has marked several Fibonacci levels as potential price targets for XRP. According to the analyst, XRP can see an increase of 261.80% to the level of 5.8563 Fibonacci between $5 to $9. After that, the analyst expects a surge of 361.80% to 18.2275 Fibonacci between $16 to $28. Support levels at 0.6649 Fibonacci at $0.9 are also highlighted, acting as a safety net for XRP during a price correction.
The featured image was created with Dall.E, a chart from Tradingview.com
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