Recent technical evaluation has revealed that the XRP worth is consolidating after breaking key resistance ranges to new highs. A crypto analyst has warned of an impending XRP price crash, urging traders to not get distracted because the RSI continues to be considerably above 50%. Discussing his predictions via brief and long-term XRP price charts, the analyst reveals that the cryptocurrency is firmly positioned in a bullish development regardless of impending corrections.
XRP Price RSI Hints At Potential Crash
On the 4-hour XRP chart, a double faucet construction is highlighted within the Relative Strength Index (RSI), a technical indicator used to measure the momentum of a cryptocurrency. This double faucet sample sometimes indicators additional downward motion earlier than a price stabilization.
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According to Dark Defender, a crypto analyst on X (previously Twitter), the RSI’s recurrent dips into oversold territory point out that XRP may expertise a worth crash to new lows. The analyst disclosed that the XRP worth had beforehand found strong support at $2.17; nonetheless, the cryptocurrency skilled a bounce to the upside.
After hitting this assist stage, the XRP price is now consolidating, a sample usually related to a possible uptrend after a correction. Despite the slight market recovery, the analyst has warned of one other impending worth crash on this similar assist zone because the RSI approaches oversold ranges as soon as extra.
Earlier in December, the RSI had hit oversold territories after dipping under 30%. Now XRP’s RSI is above 50% and signaling a possible to expertise a worth correction between the assist ranges at $2.17 and $2.18. Dark Defender has revealed that this worth crash may happen quickly as XRP is anticipated to enter oversold territory inside a day.
Despite this potential worth correction, the analyst has acknowledged that the XRP’s broader outlook nonetheless appears to be like bullish, with an uptrend continuation anticipated as soon as the market consolidates following its projected worth dip to new lows. Dark Defender has additionally predicted that XRP’s next price target after this projected correction is probably going above $3, marking an virtually 40% enhance from the $2.17 assist space.
XRP 3-Month Chart Signals Strong Bullish Set Up
Following his predictions that the XRP worth may crash because it enters oversold situations, Dark Defender additionally shared a 3-month chart evaluation, portray a brighter outlook for the cryptocurrency. The chart reveals that XRP has lately damaged via a multi-year resistance level for the primary time in over 5 years, signaling a robust bullish shift.
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The three-month inexperienced candle construction between October and December confirms strong buying pressure, setting the stage for a probably bullish Q1 2025 from January to March. A rounded bottom pattern will also be seen on the XRP 3-month chart. This sample is a traditional bullish reversal construction that signifies a gradual transfer from a downtrend to an uptrend.
Dark Defender has marked a number of Fibonacci levels as potential worth targets for XRP. According to the analyst, XRP may see a 261.80% rise to the 5.8563 Fibonacci stage between $5 to $9. After which, the analyst expects a 361.80% surge to the 18.2275 Fibonacci between $16 to $28. Support ranges on the 0.6649 Fibonacci at $0.9 have additionally been highlighted, appearing as a security web for XRP throughout worth corrections.
Featured picture created with Dall.E, chart from Tradingview.com
