The XRP price has risen by about 6% over the past three days, sparking renewed optimism among investors and analysts. The two analysts Dark Defender and Egrag see the current trend as a turning point.
XRP Price Correction Over?
Dark Defender has marked a major development in the 4-hour time frame, seeing the end of a corrective structure and establishing that XRP has reached an oversold area. “We can expect a move towards $0.6649 first,” said Dark Defender, citing the Fibonacci retracement levels and a 5 Wave Elliott structure remaining intact, suggesting upside potential.
This is supported by the chart showing that XRP has managed to close above a critical level of $0.6131, which is in line with the Elliott Wave Theory rules for wave structures. The analyst further highlighted that the near-term price target of $0.87-$1.05 is still achievable if weekly closes remain above the $0.6131 threshold.
Eggag’s analysis focuses on on the Gaussian channel and a symmetrical triangle pattern (on the 5-day chart), which are indicative of consolidating markets that could lead to a potential breakout. According to Egrag: “XRP Gaussian Channel & Symmetrical Triangle Unveil (Strong Support and Resistance Patterns): Within the framework of the Gaussian Channel, the alignment of support and resistance price targets mirrors other charts, increasing their significance.”
The chart provided by Egrag points to “robust support” at $0.50, with additional support levels of $0.54-$0.55 (“support range”) and $0.60 (“support threshold”). The resistance levels are identified by Egrag at a macro resistance point and a symmetrical triangle trendline between $0.83 and $0.85. Egrag advises the
Combining these technical analyses, it is clear that both analysts are signaling a convergence of technical indicators pointing to a bullish reversal for XRP. Dark Defender’s chart analysis, focusing on Elliott Wave continuation, and Egrag’s identification of Gaussian channel patterns both point to a potential price increase, provided it remains above certain support levels.
Price analysis: 1-day chart
The analysis of the 1-day chart of XRP using the Fibonacci retracement level shows that the price is facing strong resistance in the short term.
At the current price of $0.6194, XRP is just below the Fibonacci retracement level of 0.382 at $0.627 and below the 20-day Exponential Moving Average (EMA) at $0.625. The confluence of these two indicators indicates significant near-term resistance. Remarkably, XRP has gained key support at $0.591 at the 50-day EMA, which could allow the bulls to regain the upper hand.
However, for this to happen, the resistance at $0.625 must be broken. The next price targets could then be the 0.5 Fibonacci retracement level at $0.688 and the 0.618 Fibonacci retracement level at $0.759, which abruptly halted the upward move that started in early October and heralded the current consolidation.
Featured image from Shutterstock, chart from TradingView.com