Dark Defender (@DefendDark), a prominent crypto analyst, has recently made a bullish case for XRP based on technical analysis of the XRP/BTC pair on the monthly timeframe. His analysis hinges on trendline convergence and the Fisher indicator.
Dark Defender highlights the presence of two significant trendlines on the XRPBTC chart: an ultimate resistance trendline and an ultimate support trendline. These trendlines connect major highs and lows over an extended period, forming a channel within which the price has historically fluctuated.
Read Also: Analyst Presents XRP Turning Point Analysis On XRP Weekly Chart
The analyst points to a specific convergence of these trendlines in 2017. This convergence preceded a significant price increase for XRP, culminating in its all-time high of $3.84 in January 2018. Notably, this surge formed a new ultimate resistance trendline, which XRP’s price has remained below.
Dark Defender’s argument rests on the possibility of a similar convergence event happening again. He suggests that if the current price action continues, the ultimate resistance trendline will eventually meet the ultimate support trendline, potentially triggering another substantial price increase for XRP.
Dark Defender also incorporates the Fisher indicator, a technical momentum oscillator that gauges the strength of buying and selling pressure. Dark Defender has combined this indicator with other technical analysis tools in the past, and he points out instances where the Fisher indicator reached low levels on the XRP/BTC chart before significant price rallies.
Specifically, he highlights the indicator’s behavior in 2017, where it bottomed out before the surge that led to XRP’s all-time high. A similar pattern emerged in 2021, with the Fisher indicator reversing from a low point preceding another XRP price increase to $1.96.
Read Also: Top Analyst Sets $5 XRP Price Target Based on Multiple Technical Indicators
Dark Defender interprets these historical instances as potential signals for future price movements. He suggests that the current low reading on the Fisher indicator could be a precursor to another bullish run for XRP, coinciding with the potential convergence of the trendlines.
Dark Defender’s technical analysis provides an interesting perspective on the potential future of XRP. The convergence of trendlines and the behavior of the Fisher indicator offer historical parallels that suggest a potential for significant price growth.
The analyst pointed out that XRP is at the same point it was before the 2017 rally. Many other analysts believe XRP can recreate its surge of over 65,000% from 2017. Although Dark Defender did not set a specific target, it seems he might share that belief.
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. Times Tabloid is not responsible for any financial losses.
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