Crypto analyst Dark Defender highlights targets XRP needs to breach on its journey to a new all-time high following a breakout.
To drive home his point, the analyst shared an accompanying chart on a 3-month time frame. One of the standout features of this chart is the downward-sloping resistance line that has been in play for several years.
This trendline has kept XRP in a long-term consolidation pattern. Several analysts have called attention to this consolidation phase. Notably, XRP’s price has repeatedly tested the resistance but failed to break through.
Currently, XRP sits beneath this resistance line, at $0.5356. A breakout above this line could provide the necessary strength for a bullish takeoff. Historically, when assets break out of such long-term downtrends, a significant price movement tends to follow.
XRP Sees Strong Support Foundation
On the opposite end of the spectrum is a solid support line marked in blue. This line represents what Dark Defender calls the “Ultimate Support.”
It dates back to the earlier years of XRP’s price history, particularly from 2017, and has provided a firm foundation for XRP’s price floor, with multiple touches along the way. This trendline has held despite the volatile nature of the broader cryptocurrency market.
Since reaching the all-time high of $3.31 in January 2018 and retracing, XRP has continued to hold above this support level despite the bearish years of 2020 and 2022. The XRP price is currently hovering above this support, and a break below it could lead to new lows.
XRP to $5.8: Targets to Watch
Meanwhile, Dark Defender’s chart shows key Fibonacci extensions, starting with 23.6% at $0.3941, which XRP has surpassed. More importantly, the next levels to watch are 70.2% at $0.6640 and 100% at $0.9327. A break above these levels could signal further bullish momentum.
The Fibonacci extensions also project higher price targets if XRP can overcome its resistance zones. The 161.8% extension, positioned at $1.8815, is crucial price target in the near to medium term. If XRP can break this level, it would further confirm the start of a new bullish cycle.
However, the ultimate goal identified by Dark Defender lies at the 261.8% Fibonacci extension level, which is $5.8563. This target may seem audacious, but it syncs with the larger technical picture. Reaching this level would represent a major rally, but XRP needs to overcome the smaller hurdles first.
XRP currently trades within a narrowing price range in a triangle pattern. This compression indicates a buildup of momentum, and a breakout in either direction is imminent.
The key zone for bulls is between $0.9327 (100% Fibonacci level) and the orange resistance trendline. A decisive break above these levels could lead to a swift rally towards $1.8815 and beyond.
Conversely, failure to hold the support line could see XRP retesting lower levels, possibly back towards $0.3941, the 23.6% Fibonacci level. For now, the price action suggests that XRP is building strength for an upward move.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
