XRP on the Cusp of Breakout, Analyst Predicts $5-$8 Target After Correction

According to market analysts, XRP could be ready for a significant rally despite its recent downward trend. The asset has suffered a 13.61% decline in the past four days, slipping from $2.6 to approximately $2.22. This decline aligns with the broader cryptocurrency market correction, as Bitcoin (BTC) also dropped to $85K, marking its lowest price this year.

XRP Approaching the End of Its Corrective Phase

Despite the bearish sentiment, analysts such as Dark Defender believe that XRP’s current price movement is part of a necessary correction before a major upswing. His latest analysis suggests that the asset is undergoing an ABC correction, which has been unfolding since XRP peaked at $3.4 in mid-January—its highest level in seven years.

XRP’s retracement began after its January 16 peak, initiating Wave A of the ABC correction. This downward movement concluded at $2.27 on February 6, followed by a moderate recovery (Wave B) that lifted the asset to $2.83 on February 15. However, XRP then re-entered a decline, marking the start of Wave C, which has since driven the price to a low of $2.23—a 34% drop from its January high.

According to Dark Defender, XRP is nearing the completion of Wave C, signaling the possibility of a trend reversal. He highlighted the asset’s daily Relative Strength Index (RSI), which currently stands at 36.27—bordering the oversold territory. Historically, such levels have often preceded strong price rebounds.

Potential for a Surge to $8

Dark Defender remains optimistic that once XRP concludes its correction, a fresh Elliott Wave sequence will emerge. He anticipates an initial rebound to the $3.4 range before a brief pullback. Subsequently, he expects XRP to enter Wave 3, which could propel prices beyond previous records, reaching a projected high of $5.85.

Following another minor correction in Wave 4, the fifth and final wave could see XRP soaring as high as $8.03, aligning with the 2.618 Fibonacci extension. The analyst identified crucial levels traders should monitor. He identified a strong support zone between $1.88 and $1.91, while resistance remains at $2.44, $2.99, and $5.85.

Additionally, analyst EGRAG offered valuable insights into XRP’s monthly Relative Strength Index (RSI), which currently stands at 66.74. According to EGRAG, sustaining an RSI above 65 is vital, as it sets the stage for a potential double-top pattern. This pattern, in turn, could trigger a significant price surge.

EGRAG also observed that XRP’s Bollinger Bands indicate a wide trading range. Typically, when the RSI encounters resistance at the upper band, a second breakout attempt has historically resulted in significant price surges. If this pattern holds, XRP may soon enter an accelerated growth phase, reinforcing the bullish outlook shared by market experts.

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.

---

Follow us on Twitter, Facebook, Telegram, and Google News