In a recent examination, the renowned crypto analyst Dark Defender (@DefendDark) unveils a noteworthy pattern in the daily XRP/USDT chart that indicates a possible significant increase in XRP’s price. According to the analysis, XRP is potentially forming a “bull flag” pattern after successfully surpassing the multi-year resistance level at $0.6649. This breakthrough has been further validated by two consecutive daily closes above this pivotal threshold.
Could XRP’s Price Climb to $1.03 This Week?
The “bull flag” pattern is identified when an asset’s price experiences a sharp upward movement, followed by consolidation within a narrow, downward-sloping range, resembling a flag on a pole. Typically viewed as a continuation pattern, it suggests that after the consolidation phase, the price is likely to break out in the direction of the original sharp movement. In the case of XRP, the flagpole was formed by the steep price surge from $0.52 leading up to the breakout above $0.6649.
XRP Price Analysis
Furthermore, Dark Defender notes the Relative Strength Index (RSI), which is currently in the overbought territory at 84. An overbought RSI often signals that the asset might experience a temporary pause or consolidation due to short-term selling pressure as traders capitalize on profits.
Understanding the Consolidation Phase
This observation aligns with the anticipated consolidation phase of the bull flag pattern. However, an overbought RSI in the context of a bull flag may also indicate strong underlying momentum, suggesting that once consolidation is complete, an upward breakout could ensue.
Potential Price Target: $1.03
Dark Defender identifies the next substantial price target at $1.03, which could be reached swiftly if XRP manages to ascend beyond the immediate resistance near $0.7496. Specifically, touches or minor closings above $0.7496, with potential surges to $0.76 or higher, are considered critical for this bullish scenario to materialize. If these conditions are met, Dark Defender anticipates that XRP could rally to $1.03 within the week.
Exploring Fibonacci Levels
Notably, the analysis also hinges on the understanding of Fibonacci levels, which are extensively utilized in crypto trading to forecast potential support and resistance levels based on prior market movements. The level at $0.6649, now surpassed, could likely serve as a 70.20% retracement from the previous market high to low. If this level is breached to the downside, the bull flag pattern might extend further downward. In such a scenario, the 61.80% and 50% Fibonacci levels at $0.6044 and $0.5286 could serve as a support zone from which XRP could escalate above $1.
Conclusion and Analyst Insights
The analyst states, “XRP closed two consecutive days above $0.6649. Now, we can assert that this Fibonacci Level is surpassed as well. There are no significant levels until $1.03. If we observe touches above $0.7496, such as $0.76 or more, we can swiftly anticipate reaching $1.03 this week. This is not financial advice but my expectation. Remember, XRP broke the multi-year (7-year) resistance of $0.6649 in November 2024.”
At the time of writing, XRP was trading at $0.7086.
