The cryptocurrency market is constantly evolving, and recent technical analyses have highlighted intriguing movements in the XRP price. After breaking through key resistance levels to reach new highs, XRP is now in a consolidation phase. A prominent crypto analyst has issued a warning about a potential XRP price crash, urging investors to stay alert since the Relative Strength Index (RSI) remains significantly above 50%. Despite predictions of imminent corrections, the analysis indicates that XRP is entrenched in a bullish trend.
XRP Price RSI Signals Potential Crash
On the 4-hour XRP chart, a double tap pattern is evident in the Relative Strength Index (RSI), a critical technical indicator used to assess a cryptocurrency’s momentum. This double tap structure often heralds further downward movement prior to price stabilization.
Analyzing RSI and Support Levels
According to Dark Defender, a well-known crypto analyst on X (formerly Twitter), recurrent dips of RSI into oversold territories suggest that XRP might face a price crash to new lows. Previously, XRP found strong support at the $2.17 level. However, the cryptocurrency experienced an upward bounce, indicating potential for price recovery.
Currently, the XRP price is consolidating, a pattern typically preceding an uptrend after a correction. Despite a minor market recovery, the analyst warns of another possible price crash in this support zone, with the RSI nearing oversold levels again. Earlier in December, XRP’s RSI dipped below 30%, indicating oversold conditions. Now, with RSI above 50%, a price correction between $2.17 and $2.18 seems imminent. The analyst forecasts that this price crash could occur soon, with XRP expected to enter oversold territory within a day.
Long-Term Bullish Outlook
Despite the looming price correction, the analyst acknowledges that XRP’s broader outlook remains bullish. An uptrend continuation is anticipated once the market consolidates post the projected price dip to new lows. Dark Defender also predicts that XRP’s next price target following this correction could rise above $3, marking an almost 40% increase from the $2.17 support area.
3-Month Chart Analysis: Strong Bullish Set Up for XRP
Following his predictions of a potential XRP price crash as it enters oversold conditions, Dark Defender shared a 3-month chart analysis that paints a promising picture for the cryptocurrency. The chart reveals that XRP has recently breached a multi-year resistance level for the first time in over five years, indicating a robust bullish shift.
Q1 2025: Bullish Prospects
The three-month green candle structure from October to December confirms strong buying pressure, paving the way for a potentially bullish Q1 2025, spanning January to March. A rounded bottom pattern is also visible on the XRP 3-month chart. This classic bullish reversal structure suggests a gradual transition from a downtrend to an uptrend.
Fibonacci Levels as Price Targets
Dark Defender has highlighted several Fibonacci levels as potential price targets for XRP. The analyst suggests that XRP could see a 261.80% rise to the 5.8563 Fibonacci level, ranging between $5 to $9. Subsequently, a 361.80% surge to the 18.2275 Fibonacci level, between $16 to $28, is anticipated. Support levels at the 0.6649 Fibonacci, around $0.9, serve as a safety net for XRP amidst price corrections.
In conclusion, while short-term corrections might be on the horizon for XRP, the long-term outlook remains optimistic. Investors should stay informed and vigilant, as the cryptocurrency market continues to present both challenges and opportunities.
