Recent technical analysis shows that the XRP price is consolidating after breaking through key resistance levels to new highs. A crypto analyst warns that the XRP price is about to plummet, urging investors not to be distracted, as the RSI is still well above 50%. By discussing his predictions through short-term and long-term XRP price charts, the analyst indicated that despite an impending correction, the cryptocurrency remains firmly in a bullish trend.
XRP price RSI suggests a potential crash.
On the 4-hour XRP chart, a double-click structure is highlighted in the Relative Strength Index (RSI), a technical indicator used to measure the momentum of cryptocurrencies. This double-click pattern usually signals further declines before the price stabilizes.
Source: X
According to Dark Defender, a crypto analyst on X (formerly Twitter), the RSI repeatedly dipping into the oversold zone suggests that the price of XRP could fall to new lows. The analyst revealed that XRP previously found strong support at $2.17; however, the cryptocurrency experienced an upward rebound.
After reaching this support level, XRP's price is now consolidating, a pattern typically associated with a potential upward trend after a correction. Although the market has slightly recovered, analysts warn that as the RSI approaches the oversold levels again, the price in the same support area is likely to crash once more.
At the beginning of December, the RSI fell below 30% and entered the oversold zone. Now the RSI for XRP is above 50%, indicating that the price may experience a pullback between the support levels of $2.17 and $2.18. Dark Defender revealed that this price plunge could happen soon, as XRP is expected to enter the oversold zone within a day.
Despite this potential price adjustment, analysts acknowledge that the broader outlook for XRP still appears bullish, and once the market consolidates after the expected price drop to new lows, the upward trend is expected to continue. Dark Defender also predicts that after this predicted correction, XRP's next price target could be above $3, up nearly 2.17% from the support area of $40.
The 3-month chart for XRP shows a strong bullish setup.
After predicting that the XRP price could plummet when entering an oversold state, Dark Defender also shared a 3-month chart analysis, painting a brighter outlook for the cryptocurrency. The chart shows that XRP has recently broken through a long-standing resistance level for the first time in over five years, indicating a strong bullish shift.
Source: X
The three-month green candle structure from October to December confirms strong buying pressure, laying the groundwork for a potential bullish trend from January to March in Q1 2025. A rounded bottom pattern can also be seen on the XRP 3-month chart. This formation is a classic bullish reversal structure that indicates 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 between Fibonacci levels of 5 to 9 dollars by 261.80% to $5.8563. Subsequently, the analyst expects a surge of 361.80% between $16 and $28 based on the 18.2275 Fibonacci. The support level of 0.6649 Fibonacci at $0.9 is also highlighted, serving as a safety net for XRP during price adjustments.
