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In a recent analysis, market watcher Dark Defender has identified a critical resistance level that XRP needs to breach to rally to new heights.
His long-term structure for XRP, established over a year ago, has targeted three key price points at $1.88, $5.85, and $18.22. To reach these milestones, XRP needs to first break through a strong resistance point at $0.6649.
XRP’s Initial Target and Correction
Dark Defender’s chart depicts XRP price over a weekly timeframe, with the altcoin showing a strong bullish run leading to its first wave peak at $0.9327. The analyst had set an initial XRP target of $0.89, but the summary judgment ruling in the Ripple case triggered a more substantial push to $0.93 last July.
Following the $0.93 high, Dark Defender predicted a subsequent retracement. Interestingly, XRP faced this retracement, dropping to $0.3814 in July this year, almost perfectly touching the lowest Fibonacci retracement level at 23.6% ($0.3917).
Despite the steep decline, Dark Defender believes this is the lowest level XRP is likely to reach. The price action since last year shows a narrowing range as XRP continues to move between key support levels of $0.4850 and $0.5286 and resistance at $0.6649.
These levels are important in determining the next direction for the asset. According to Dark Defender, maintaining support above $0.48 and particularly $0.3917 is important for XRP’s upward potential.
XRP Needs to Break $0.6649
Despite recent consolidations and pullbacks, the long-term outlook remains bullish. While the weekly price chart currently signals red—a bearish signal—Dark Defender suspects this could be a false signal, mainly because the monthly trend remains positive.
This divergence between the weekly and monthly charts suggests that XRP could soon make significant upward moves if it can break the $0.6649 resistance.
Notably, the 70.20% Fibonacci line aligns with the $0.6649 level, being a major point of contention. Dark Defender refers to this as the “final boss,” as it has rejected XRP’s price several times.
Breaking above this level could present the launchpad for massive price surges, bringing XRP to its Wave 3 targets. The analyst forecasts that once XRP closes above $0.6649 on either the daily, weekly, or monthly timeframe, a major rally could follow, with $1.88 as the next immediate target.
Ultimate XRP Targets
The chart also depicts potential higher targets for XRP based on Elliott Wave theory. After the $1.88 mark, the next price levels are $5.85 and $18.22. For this to happen, XRP needs to hold key support levels and break through the resistance zones that have constrained its price.
One area of concern is the possibility of XRP dipping back to the $0.3917 support, which has already been tested. Dark Defender mentions the potential for a “double dip” around this area but considers it unlikely.
The market analyst noted that the price is more likely to continue its upward trajectory as long as key support levels hold. At press time, XRP currently changes hands at $0.5302, having dropped 2.37% over the last 24 hours.