Crypto analyst Dark Defender recently provided an update on XRP’s price trajectory, accompanied by a technical chart.
This analysis focuses on potential support and resistance levels for XRP/USD, based on Elliott Wave theory and Ichimoku Cloud indicators, two widely used methods for predicting price movements in technical analysis.
Dark Defender’s insights are aimed at helping XRP traders understand the critical levels that could determine the future trend for this cryptocurrency. Here’s a breakdown of his observations.
Hi all. I'll make it short and simple today.
1. $XRP could hit $0.4850, & $0.4864 (Blue Support)
2. It is always expected to have a bounce from Supports
3. Staying above Blue Support for 3 days: good to go for $0.66 resistance
4. Staying below $0.4864, good to go for $0.3917… pic.twitter.com/oXcwXCppZv— Dark Defender (@DefendDark) October 26, 2024
Key Support and Resistance Levels
Support Level at $0.4850 – $0.4864: Dark Defender identifies the range between $0.4850 and $0.4864 as a critical support area for XRP. He notes that a bounce from this blue support level is a likely outcome.
Support zones are often regions where the price could halt its downward trend and potentially start reversing upward. Should XRP hold above this level for three consecutive days, this would be a bullish sign, potentially signaling the strength needed for the next upward push.
Resistance Level at $0.66: If XRP sustains its position above the $0.4864 support, Dark Defender suggests that the next target could be the $0.66 resistance level. A resistance level acts as a ceiling where selling pressure may increase, potentially hindering further upward movement. Breaking past $0.66 could allow XRP to aim for higher targets, but for now, this level serves as a crucial checkpoint for bulls.
Break Below $0.4864: Alternatively, if XRP falls below the $0.4864 support level, it may retest the $0.3917 mark. This would suggest that bearish pressure is intensifying. A drop to this lower level would mean XRP fails to gain the strength necessary to maintain its current upward momentum, possibly leading to a period of extended consolidation or further declines before any renewed attempt to break resistance.
The Elliott Wave Structure
Dark Defender’s analysis incorporates Elliott Wave theory, which posits that market prices move in predictable wave patterns driven by investor psychology. He suggests that XRP is following a five-wave structure, which implies that XRP’s recent price movements are part of a larger trend.
The five-wave model includes three impulse waves (1, 3, and 5) moving in the direction of the primary trend, interspersed by two corrective waves (2 and 4).
According to the chart, XRP seems to have completed waves (1) and (2), with wave (3) potentially forming as long as support holds. This would imply that XRP’s current price is part of a longer-term uptrend, even if it faces near-term resistance or support retests.
Orange Resistance and Ichimoku Cloud Insights
In addition to Elliott Waves, Dark Defender highlights an orange resistance line, indicating that it represents a key hurdle in the path of XRP’s price appreciation.
Once XRP breaks through this orange line, he predicts that the breakout could lead to a strong upward trend. He suggests that once this resistance is broken, XRP may not face significant obstacles in its upward movement.
The Ichimoku Cloud on the chart serves as an additional indicator of market trends and momentum. The cloud is currently positioned around XRP’s price, indicating a potential period of consolidation. A breakout above the cloud could add bullish momentum, while a fall below it may suggest further weakness.
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Implications for XRP Traders
Dark Defender’s technical analysis provides XRP traders with important levels to monitor. In summary:
Short-term bullish scenario: If XRP holds above $0.4864 for three days, it could target the $0.66 resistance level. This would align with the completion of Elliott Wave (3) in a five-wave structure, potentially leading to more substantial gains.
Bearish scenario: A fall below $0.4864 would likely push XRP towards $0.3917, indicating further bearish pressure. This would place XRP at risk of consolidating at lower levels before a possible recovery.
Long-term outlook: The anticipated breakthrough of the orange resistance line could signal the start of a stronger bullish trend. Dark Defender’s comment that “there will be no return” once the orange resistance is broken suggests a sustained rally could follow if this level is breached.
Dark Defender’s analysis highlights the importance of the $0.4864 support level and $0.66 resistance level for XRP.
The analyst’s use of Elliott Wave theory and Ichimoku Cloud suggests that XRP is at a pivotal point where breaking above resistance levels could catalyze a bullish run. A failure to hold key support levels may lead to further declines. Traders are advised to monitor these levels closely to gauge XRP’s trend direction.
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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