XRP Targets $18.22, Here is The Critical Level It Must Break to Trigger a Massive Spike
thecryptobasic.com 27 September 2024 07:56, UTC Market analyst Dark Defender highlights crucial levels in XRP price action that could determine its future trajectory.
In his latest analysis, he discussed the importance of the $0.6649 price level, suggesting that breaching this resistance could trigger a significant bull run reminiscent of XRP’s 2017 surge.
He confirmed that over the past several months, XRP has been trapped in a consolidation phase, fluctuating between the resistance at $0.6649 and the support at $0.3917.
This extended consolidation period indicates a buildup of pressure, which could result in a powerful breakout once the price decisively moves above or below these levels.
Critical XRP Resistance Level at $0.6649
Dark Defender spotlighted the importance of the $0.6649 level, which lies just above the weekly Ichimoku cloud. According to him, breaking above this resistance could signify a shift in market sentiment, leading to a potential rally.
Pinpointing the Fibonacci retracement levels, the analyst predicts that if XRP manages to sustain a breakout above $0.6649, it could eventually trigger an impressive run. Dark Defender expects this run to push prices to as high as $18.22 in the longer term.
Meanwhile, in the short term, the analyst identified two crucial support levels at $0.5286 and $0.4623. In particular, the $0.5286 level is close to the 50% Fibonacci retracement of the most recent bullish wave, making it a strong area of interest for bulls looking to defend against further declines.
The $0.4623 region serves as a secondary support, providing an additional backing for XRP should the market experience more bearish pressure.
RSI Indicators and Historical Parallels
The analyst also called attention to the weekly Relative Strength Index. The RSI dips on the weekly chart have paralleled price dips, forming higher lows—a bullish sign indicating that sellers are losing momentum.
Additionally, a golden cross has formed on the weekly RSI, which occurs when the short-term moving average crosses above the long-term moving average, signaling potential bullish momentum.
Dark Defender draws a parallel between the current market conditions and those seen just before XRP’s historic 2017 bull run. If history repeats itself, XRP could be on the verge of a significant rally, potentially targeting the 361.80% Fibonacci extension level at $18.22 in Wave 3.
Current Market Overview
A more recent daily chart shows XRP trading at $0.585, slightly above a rising trendline that has provided support since July 5, 2024. The trendline has successfully prevented lower lows, maintaining a bullish bias in the short term.
The Daily Momentum Index (DMI) indicators present a mixed picture. The +DI (blue line) is at 17.499, while the -DI (yellow line) is at 24.195, suggesting that bears still have the upper hand in the market.
The Average Directional Index (ADX), which measures the strength of the trend, is relatively low at 14.186, indicating a weak trend that could strengthen if a breakout occurs.
