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Cryptocurrency analyst Dark Defender (@DefendDark) has made an optimistic forecast for XRP, predicting a price surge above $5.85 based on a combination of technical indicators and chart patterns. Despite recent market stagnation, the analyst points out several key factors that suggest a significant upward movement is on the horizon, including the application of Elliott Wave theory.
Reasons for XRP’s Bullish Outlook
Dark Defender explains that the current XRP price is influenced by three trend lines. Two of these trend lines form a symmetrical triangle pattern, while the third— a downward-sloping orange line— represents a long-term downtrend that XRP has recently broken above on the monthly chart.
The symmetrical triangle pattern, which consists of two converging trendlines, indicates a 4-year period of consolidation. This pattern typically suggests a continuation of the existing trend upon breakout. XRP has attempted to break to the upside multiple times without success.
The breakthrough above the long-term downtrend line is seen as a strong bullish signal, signaling a shift from bearish to bullish sentiment and potentially leading to significant price growth.
Dark Defender’s analysis incorporates Elliott Wave theory, with the chart indicating that XRP is likely to enter a Wave 3 impulse move, historically the most powerful and extended wave in a five-wave trend sequence.
The analyst believes that Wave 2, a corrective phase marked by downward price movement, has been completed, and XRP is now moving into Wave 3. Wave 3 is characterized by strong momentum and increased market participation, potentially leading to a surge above $5.85.
The projected target aligns with Fibonacci extension levels associated with Wave 3 movements, providing a technical basis for the expected price increase. In the short term, the 70.2% Fibonacci price level at $0.6649 is a crucial resistance for XRP. If this level is breached, Wave 3 could be confirmed, with the first major extension target at the 161.8% Fibonacci level of $1.88 and the ultimate target at the 261.8% Fibonacci level of $5.85.
Dark Defender also highlights that the Heikin Ashi candles on the monthly chart are averaging at $0.57. The analyst notes that maintaining the monthly average price above the support level is crucial for XRP’s momentum to continue.
Furthermore, the Moving Average Convergence Divergence (MACD) indicator on the monthly timeframe has shown a bullish signal with a green dot, indicating an increase in upward momentum. The MACD is used to identify potential trend reversals, and a green dot typically signifies a positive shift in momentum.
Dark Defender asserts that XRP’s price action is primarily driven by technical patterns and indicators, rather than external news events such as the Ripple SEC lawsuit. While acknowledging the minor impact of news events, the analyst believes that technical factors have a greater influence on XRP’s movements.
Based on the technical analysis provided— including the breakout above the long-term downtrend line, the significance of the symmetrical triangle pattern, the importance of the Heikin Ashi monthly average price, bullish signals from the MACD, and the Elliott Wave count— Dark Defender maintains a “super bullish” outlook on XRP, anticipating a price rise above $5.85.
At the time of writing, XRP is trading at $0.53.
Featured image created with DALL.E, chart from TradingView.com