Recent technical analysis shows that XRP's price is consolidating after breaking through key resistance levels to new highs. A crypto analyst warns that XRP's price is about to plummet, urging investors not to be distracted as the RSI is still well above 50%. Discussing his predictions using both short-term and long-term XRP price charts, the analyst indicates 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 top structure is highlighted in the Relative Strength Index (RSI), which is a technical indicator used to measure momentum in cryptocurrencies. This double top pattern typically signals further declines before price stabilization.
Source: X
According to Dark Defender, a crypto analyst on X (formerly Twitter), the RSI repeatedly falling into the oversold region suggests that XRP's price may drop to new lows. The analyst revealed that XRP previously found strong support at $2.17; however, the cryptocurrency experienced an upward rebound.
After reaching the support level, XRP's price is now consolidating, a pattern typically associated with a potential upward trend after a correction. Although the market has rebounded slightly, analysts warn that as the RSI approaches oversold levels again, the price at the same support region is about to crash once more.
At the beginning of December, the RSI fell below 30% and entered the oversold region. Now the RSI for XRP is above 50%, indicating that a price pullback may occur between the 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 area within a day.
Despite this potential price adjustment, analysts acknowledge that XRP's broader outlook still appears bullish, and once the market consolidates after the anticipated price drop to new lows, the upward trend is expected to continue. Dark Defender also predicts that after this corrective forecast, XRP's next price target could be above $3, rising nearly 2.17% from the support area of $40.
The 3-month chart for XRP indicates a strong bullish setup.
After predicting that the XRP price could plummet into oversold territory, Dark Defender also shared a 3-month chart analysis that paints a brighter future for the cryptocurrency. The chart shows that XRP recently broke through a multi-year resistance level for the first time in over five years, indicating a strong bullish turnaround.
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, indicating a gradual transition 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 the Fibonacci levels of 261.80% to $5.8563 between $5 and $9. Thereafter, the analyst expects the Fibonacci level of 18.2275 between $16 and $28 to surge 361.80%. A support level of Fibonacci 0.6649 at $0.9 is also highlighted as a safety net for XRP during price adjustments.
