Here’s is XRP ABCDE Pattern that Could Finally Take XRP to $5-$6
thecryptobasic.com 07 August 2024 10:13, UTC Pseudonymous analyst Dark Defender recently highlighted a critical ABCDE pattern on the XRP monthly chart, suggesting potential bullish movements.
The pattern, which spans several years, features crucial price movements recorded by XRP since 2014. Notably, the pattern provides reasonable insights into XRP’s possible next direction.
The ABCDE Pattern
The ABCDE pattern began with XRP’s extraordinary surge of 117,693% from a low of $0.00281 in July 2014 to its all-time high of $3.31 in January 2018. Dark Defender’a chart shows this monumental rise with a long blue line on the monthly timeframe.
However, the bullish momentum could not sustain itself, leading to a sharp correction as the crypto market dropped. XRP collapsed by 96% from its peak to a low of $0.1140 in March 2020, marking the beginning of the A movement.
Subsequently, in the B movement, XRP witnessed a resurgence, climbing 1,624% from the $0.1140 low to $1.966 in April 2021. Yet again, the cryptocurrency faced a significant drop, declining 84% from $1.966 in April 2021 to $0.3148 in November 2022, forming the C movement.
The D movement saw another recovery, with XRP gaining 195% from the $0.3148 low to $0.93 in July 2023. Finally, the E movement recorded a 59% drop from $0.93 in July 2023 to $0.3824 in July 2024.
XRP’s Next Possible Direction
These movements complete the ABCDE pattern, as shown in Dark Defender’s analysis. The formation of this pattern has triggered discussions within the XRP community about the XRP’s next potential direction.
Dark Defender proposed three possible paths for XRP: a flat C wave leading to a drop to $0.22, an irregular-expanded C wave plunging to $0.09, or the completion of the ABCDE pattern, setting the stage for a rally towards $5.85.
In response, Jan, a community member, dismissed the bearish scenarios, arguing that the current bull market, Ripple’s expansion moves, and the potential end of the lawsuit make such low prices unlikely. He emphasized that even smaller dips have been short-lived, suggesting that a significant drop to $0.22 or $0.09 is unrealistic.
A Proposed XRP Rise to $6
Meanwhile, market analyst EGRAG provided a more bullish outlook. He pointed out that the U.S. market is in an expansion phase and Bitcoin has already hit new all-time highs. Recall that BTC clinched a new ATH above $73K in March.
EGRAG believes that the overall narrative is favorable for XRP, and the ABCDE pattern is complete, paving the way for it to reach $6.4 (Fib 1.618) as a minimum target. He noted that unless an unforeseen event occurs, the bullish trajectory for XRP is highly plausible, presenting a generational buying opportunity if any unexpected dips occur.
Meanwhile, XRP is currently in a short-term recovery phase following the recent market collapse. The Bollinger Bands, which measure volatility, indicate that XRP has been trading within a relatively narrow range, suggesting consolidation.
Also, the RSI shows XRP’s current position at 41.57, which is below the 50 mark, indicating that it is in a neutral to slightly bearish zone. The recent upward movement suggests that XRP is recovering from oversold conditions, possibly gearing up for a bullish run. XRP currently trades for $0.5130.
