XRP Almost Finalized Consolidation, Analyst Sets Short-Term Targets and Supports

XRP has been in a consolidation phase on the daily chart, with recent indicators suggesting an imminent breakout. According to crypto analyst Dark Defender (@DefendDark), the market structure indicates that XRP is finalizing this phase and preparing for a significant upward movement.

One of the key observations in the analysis is that the Relative Strength Index (RSI) has reached a bottom, mirroring past cycles where a rally followed shortly after. This technical indicator suggests that bearish momentum is weakening and a shift toward the upside is likely.

Short-Term Targets and Key Resistance Levels

The short-term targets for XRP are $5.85 and $8.76, targets the analyst has previously predicted based on Fibonacci extensions and historical price behavior. The 161.8% Fibonacci retracement level around $1.88 has provided strong support, with $2.33 acting as another key level to watch.

If these levels hold, XRP could see significant upward movement in the next wave. Dark Defender refers to this upcoming phase as “Phase II,” in which Wave 3 is expected to drive prices higher. This aligns with Elliott Wave Theory, which often identifies Wave 3 as the strongest and most extended bullish wave.

Technical Indicators Supporting the Uptrend

The RSI bottom formation is a crucial signal, as similar patterns in the past have led to substantial price increases. Fibonacci retracement levels indicate that XRP has respected key support zones, reinforcing the likelihood of an upward breakout.

The chart shows that the first target of $5.85 aligns with the 261.8% Fibonacci level, and the market structure also suggests that XRP is emerging from consolidation, a pattern that has historically preceded strong rallies.

Risks and Considerations

Despite the strong technical outlook, external factors could still influence XRP’s trajectory. Broader market conditions, including potential corrections in the cryptocurrency sector, may impact its price movement.

Regulatory developments surrounding XRP and Ripple remain important, as they have previously influenced market sentiment. Additionally, a prominent analyst recently showed that XRP broke the 2017 fractal, suggesting historical patterns may not hold as much weight anymore.

Dark Defender suggests that XRP is on the verge of completing its consolidation phase, with technical indicators pointing to an impending breakout. If support levels at $1.88 and $2.33 remain intact, the price could be positioned for a strong rally toward $5.85 and potentially $8.76. The digital asset is trading at $2.5, up 4.31% from yesterday.

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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