Recent analysis by Dark Defender (@DefendDark), a notable cryptocurrency analyst on X, suggests that XRP is on the verge of a significant breakout. His observations are based on a combination of technical indicators, focusing on the weekly resistance level and the Ichimoku cloud analysis.
The chart shared by Dark Defender shows XRP in a critical position, attempting to breach the weekly resistance level. This resistance is visually represented by an orange trend line that has capped XRP’s price movements since early 2023. Despite the current position of XRP below this resistance level, there are compelling indications of a potential breakthrough.
Ichimoku Cloud and RSI Indicators
The Ichimoku cloud, a comprehensive indicator used to gauge momentum, support, and resistance levels, shows XRP currently positioned below the cloud. Typically, a price below the Ichimoku cloud suggests a bearish trend. However, Dark Defender points out that other indicators, specifically the Relative Strength Index (RSI), are showing bullish signals.
The RSI, a momentum oscillator that measures the speed and change of price movements, is highlighted in the chart, emphasizing its “extreme bullish level.” This suggests that XRP is experiencing strong buying pressure, potentially foreshadowing an upward move. Notably, another prominent analyst recently predicted that XRP will soon break out of a multi-year RSI trendline.
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Potential for Breakout
According to Dark Defender, the combination of these indicators points towards an imminent breakout. He notes, “XRP tried to break the weekly resistance last week. Although the level is under Ichimoku, other indicators signal XRP to break here shortly.” The analyst anticipates a significant price movement, bolstered by the bullish RSI readings.
XRP has experienced fluctuations over the past year, influenced by broader market trends and regulatory developments. The current analysis builds on these historical price movements, providing a context for the potential breakout.
The chart shows significant Fibonacci retracement levels at 23.60% (approximately $0.3917) and 70.20% (approximately $0.6649), which are key levels to watch in the event of a breakout.
Although he did not provide a specific target, he highlighted the Fibonacci level at 161.80%. This level coincides with the $1.88 price point he has previously predicted for the digital asset. At the time of press, XRP is trading at $0.5904, up 0.17% over the past 24 hours, according to CoinMarketCap.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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