In a new technical analysis of the XRP price in the weekly chart (XRP/USD), crypto analyst Dark Defender warns of a potential last major crash. The analysis uses the Elliott Wave theory and dives into the historical and projected paths for XRP, marked by critical price levels and wave patterns.
Final Crash Ahead For XRP Price?
According to Dark Defender, XRP concluded its Wave 1 at a high of $0.9327 in mid July last year, significantly surpassing initial targets set when the price was just $0.28. “The ones know, know, that we targeted $0.89 and above when XRP was at $0.28. However, XRP closed the Wave 1 at $0.9327. So, we haven’t decided on that, right? We set the limits and targets and then see it. So, right after the initial target, XRP started consolidating,” Dark Defender commented.
The chart analysis shows that after peaking, the price action found a firm base at $0.3917, a level that was closely approached with a touch at $0.3814, underscoring the accuracy of the predicted support levels based on the Elliott Wave theory. “We all knew that our lowest level was $0.3917, which we set. Later, XRP almost precisely touched $0.3814.We then underlined that this area was the lowest Fibonacci zone several times,” the analyst declared.
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Moving into more recent activity, Dark Defender has placed significant emphasis on the $0.6649 mark, describing it as an “extraordinary level” and “the strongest of all.” The analyst notes, “And as soon as we see XRP above $0.66, a day, a week, a month, then we will see tremendous moves.”
However, the latest weekly Wave indicator provides a red signal, suggesting possible downward pressure. Dark Defender cautions investors, “at the moment, the weekly indicator gives us a red signal, which can be false but tells us that, guys, think about the support levels of $0.5286, $0.4850, and the lowest probability of $0.3917 as a double dip.”
Although there is potential for a decline, the likelihood remains low, according to Dark Defender. “Can XRP touch here again!!! Oh God, yes but it is less likely.” Despite the short-term bearish signal, the monthly wave trend remains green, which typically overrides the weekly indicators, suggesting the red signal could be premature.
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“Although the weekly signals red now, the monthly wave trend is green which trumps the weekly. This made me think that the weekly is a fake signal at this stage,” the analyst explains, reinforcing the potential for continued bullish momentum in the longer term.
Remarkably, the wave indicator also gave false signals on the weekly chart during the first wave, which underlines the long-term theory of Dark Defender. He still believes that XRP’s Wave 3 “possible targets are at $0.88, $5.85 and $18.22 respectively.”
However, before the price can rally this high, there is one last major resistance. “As long as $0.48 and most importantly $0.3917 is maintained, XRP targets are clear, especially after $0.6649. Please do not underestimate and think what the hell is $0.66? It is the red thin line.We know, and see what is going on in the background. Less people remain on the ship, we see. But I trust myself, Ripple, and XRP. Exciting times are ahead of us,” he states.
At press time, XRP traded at $0.5302.
Featured image created with DALL.E, chart from TradingView.com