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Dark Defender provides a new technical analysis for XRP, identifying a critical level the coin must hold to maintain the pattern observed in 2014 – 2017.
According to the analysis, XRP has continued to mirror this pattern despite the market downturn. This comes after XRP recently hit a support level of $0.3917, a point Dark Defender labeled as the asset’s “Point of Control (POC).”
#XRP hit our last support level of $0.3917 after staying under $0.4623 for 3 consecutive candles.
$0.3917 "Point of Control" (POC) Green Dotted Line
The price level where most trades took place since 2014And surprisingly, #Bitcoin POC is at $1,522
So, considering Bitcoin, XRP… pic.twitter.com/9vxG63NXvw
— Dark Defender (@DefendDark) July 5, 2024
The analyst noted that the support level marks the area where most XRP trades have occurred since 2014, ten years ago. Notably, the $0.3917 support level serves as a psychological barrier, frequently luring traders who consider it a value point, thereby creating a potential price rebound for the digital asset.
The significance of this support level cannot be overstated. XRP dropping below this level could lead to further price decline and vice versa.
Meanwhile, Dark Defender compared XRP’s POC with Bitcoin’s, which stood at $1,522. The analyst said that while Bitcoin was still far from its POC, XRP was situated at the level where it experienced most trades.
XRP Shows Oversold Conditions
Furthermore, Dark Defender leveraged the Relative Strength Index (RSI) indicator to support their arguments about XRP. According to Dark Defender, XRP’s RSI was at the lower boundary of its range on the daily and weekly charts.
The analyst contended that XRP’s daily and weekly RSI readings also show oversold conditions, suggesting buying opportunities based on historical patterns. Also, XRP’s monthly RSI is low, similar to levels observed in March 2020 and November 2022.
Recall that XRP’s RSI plunged to its lowest monthly level of 38.02 in May.
Critical Level XRP Must Maintain
Furthermore, Dark Defender contended that XRP’s current price action mirrors the pattern observed in 2014-2017. This period precedes a significant rally that eventually took XRP’s price to an all-time high of $3.84 on January 4, 2018.
However, Dark Defender stated that XRP must hold the critical support level of $0.3917 to maintain the 2014 – 2017 pattern.
The analysis follows XRP’s crash below the $0.4 level on July 5. Shortly after the crash, XRP rebounded to around $0.43 a few hours later and is currently trading at $0.4364, reflecting a daily loss of 0.32%.