Recent technical analysis shows that XRP's price is consolidating after breaking through key resistance levels to new highs. A cryptocurrency analyst has warned of an impending XRP price collapse, urging investors not to be distracted as the RSI remains significantly above 50%. Discussing his predictions through short-term and long-term XRP price charts, the analyst indicates that this cryptocurrency is in a strong position in a bullish trend despite an upcoming adjustment.
XRP Price RSI Suggests Potential Collapse
On the 4-hour XRP chart, the double tap structure is marked in the Relative Strength Index (RSI), a technical indicator used to measure the momentum of the cryptocurrency. This double tap pattern often signals the next downward movement before the price stabilizes.
According to Dark Defender, a cryptocurrency analyst on X (formerly Twitter), the RSI continuously dropping into the oversold zone indicates that XRP may experience a price drop to new lows. The analyst revealed that XRP's price had previously found strong support at $2.17; however, this cryptocurrency has seen a recovery in an upward direction.
After reaching this support level, XRP's price is now consolidating, a pattern often associated with potential upward trends after adjustments. Although the market has slightly recovered, the analyst has warned of another impending price collapse in the same support area as the RSI approaches the oversold level once again.
At the beginning of December, the RSI hit the oversold zone after falling below 30%. Currently, the RSI of XRP is above 50% and indicates the potential for price adjustments between support levels of $2.17 and $2.18. Dark Defender revealed that this price drop could happen soon as XRP is expected to enter the oversold zone within a day.
Despite this potential price adjustment, the analyst acknowledges that the overall outlook for XRP still seems optimistic, with a continued upward trend expected as the market consolidates following the anticipated price drop to new lows. Dark Defender also predicts that the next price target for XRP after this expected adjustment could be above $3, marking an increase of nearly 40% from the support zone of $2.17.
3-Month Chart of XRP Signals Strong Bullish Setup
After his prediction that XRP's price could collapse when entering oversold conditions, Dark Defender also shared a 3-month chart analysis, painting a brighter outlook for the cryptocurrency. The chart shows that XRP recently broke through a multi-year resistance for the first time in over five years, signaling a strong bullish change.
The three-month green candle structure between October and December confirms strong buying pressure, laying the groundwork for Q1 2025 to potentially see price increases from January to March. A rounded bottom pattern can also be seen on XRP's 3-month chart. This pattern is a classic bullish reversal structure indicating a gradual shift from a downtrend to an uptrend.
Dark Defender has marked several Fibonacci levels as potential price targets for XRP. According to the analyst, XRP could rise 261.80% to the Fibonacci level of 5.8563 in the range of $5 to $9. Subsequently, the analyst expects a 361.80% increase to the Fibonacci level of 18.2275 in the range of $16 to $28. The support levels at Fibonacci 0.6649 at $0.9 have also been highlighted, serving as a safety net for XRP during the price adjustment.
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