Cryptocurrency is having a bad day, but this analyst remains confident that there is one cryptocurrency that could reach new heights by 2025 when assessing its latest price movements.
Dark Defender, a cryptocurrency trader with nearly 130,000 followers on X, has shared a chart showing that $XRP could rise to $5 in the coming weeks despite this recent pullback of the token.
So far in the trading session, the native asset of the Ripple network has recorded a loss of 4.4% in the past 24 hours and is currently at $2.32 per coin. Other major cryptocurrencies including Bitcoin ($BTC) and Ethereum ($ETH) are also experiencing similar declines of 5.2% and 7.1% respectively.
Meanwhile, XRP's performance over the past 30 days has also been negative with an accumulated loss of 5.5%.
However, Dark Defender believes that the current pattern – descending triangle – will play out as expected with a short-term breakout above the resistance level of $2.5 as sellers run out of ammunition.
It is noteworthy that all 10 top cryptocurrencies, including XRP, have seen gains over the past 7 days despite this decline.
Therefore, this pullback is understood as a profit-taking move rather than a complete retracement.
Analysts also predict that the cryptocurrency market will weaken as the day of Donald Trump's inauguration speech approaches.
This event is seen as a 'sell the news' moment for cryptocurrency as the first pro-crypto president will be sworn in, opening a new era for this still relatively young industry.
The Triple Bottom pattern for XRP is still in play despite the temporary decline.
Multiple touches at the support level of $1.95 have led to the formation of a triple bottom pattern that could push the price of XRP up to $3.5 in the near future – quite consistent with Dark Defender's predictions.
Today's decline is not necessarily a bad thing as buyers have exhausted most of their capital while pushing the price of XRP from $2 to $2.5 in recent days, and of course, there will be a tendency to take profits from those short-term gains.
The trading volume from yesterday when the price hit the upper trend line above the average level means this is a contested area.
Both the Relative Strength Index (RSI) and MACD are sending conflicting signals as expected since the overall trend is still unclear. However, the most likely outcome without negative macro catalysts will be XRP rising above the $2.5 level as sellers capitulate.
