Recent technical analysis shows that after breaking through a key resistance level to reach a new high, XRP's price is in a consolidation phase. A crypto analyst warns that XRP's price is about to drop significantly and reminds investors not to be distracted, as the Relative Strength Index (RSI) is still well above 50%. The analyst elaborated on his forecast through XRP's short-term and long-term price charts, noting that despite the upcoming adjustment, this cryptocurrency remains in a bullish trend.
XRP Price RSI Indicates Potential Downward Movement
In the 4-hour XRP chart, the RSI indicator shows a double touch structure, which is a technical indicator for measuring cryptocurrency momentum. The double touch pattern usually indicates that the price will stabilize after further declines.
XRP Price Dynamics
According to crypto analyst Dark Defender (formerly a Twitter user), the RSI has repeatedly fallen into the oversold range, indicating that XRP's price may drop to new lows. The analyst revealed that XRP's price previously found strong support at $2.17 but then rebounded upward.
After reaching this support level, XRP's price is currently in a consolidation phase, which is usually associated with a potential upward trend after a correction. Despite a slight rebound in the market, analysts warn that as the RSI approaches the oversold range again, this support area may face another price drop.
As early as the beginning of December, the RSI fell below 30% into the oversold range. Now, XRP's RSI is above 50%, indicating that the price may experience an adjustment within the support range of $2.17 to $2.18. Dark Defender revealed that this price drop may occur soon, as XRP is expected to enter the oversold range within a day.
Despite this potential price adjustment, analysts acknowledge that the overall outlook for XRP remains bullish. They expect the market to stabilize after this predicted price decline and reach new lows, and then continue on an upward trend. Dark Defender also predicts that after this adjustment, XRP's next price target could be above $3, nearly a 40% increase from the support area of $2.17.
XRP's March chart shows a strong bullish trend
After predicting that XRP's price might drop due to entering the oversold range, Dark Defender also shared a three-month chart analysis, painting a brighter future for this cryptocurrency. The chart shows that XRP recently broke through resistance levels for the first time in five years, marking a strong bullish shift.
The three-month green candlestick structure from October to December confirms strong buying pressure, laying the foundation for a potential bullish first quarter from January to March 2025. At the same time, an arc bottom pattern can also be seen on XRP's March chart. This is a classic bullish reversal structure indicating that the trend will gradually shift from downward to upward.
Dark Defender marked several Fibonacci levels as potential price targets for XRP. According to analysts, XRP may rise by 261.80% to the 5.8563 Fibonacci level, with a price range between $5 and $9. After that, analysts expect it to rise another 361.80% to the 18.2275 Fibonacci level, with a price range between $16 and $28. Meanwhile, analysts also emphasized the 0.6649 Fibonacci level as a support point at $0.9, which will provide security for XRP during price adjustments.
#PCE通胀降温
In the next layout direction, I will guide everyone to target the lucrative opportunities in altcoins, especially those with high potential projects, with an expected space of over 10 times being reasonable. If you want to make big money during the bull market, like and comment, and I will take you through the entire bull market!