In a detailed chart analysis of the XRP/USD trading pair, seasoned crypto analyst Dark Defender has shed light on several significant indicators that point towards a bullish trajectory for the popular cryptocurrency.
Taking to Twitter to share his insights, Dark Defender remarked, “Morning All. Hope you had a great weekend. XRP in the daily time frame is still within our price range. Above $0.52 – $0.55 is a challenge, first to break the resistance & stay above the Ichimoku Clouds.”
This sentiment aligns with the depicted interaction of XRP with the Ichimoku Cloud on the chart, a renowned technical tool that offers insights on support, resistance, and momentum. Furthermore, the analyst outlined specific price brackets, stating that XRP is: “Bullish above $0.55 – $0.66, Extra Bullish between $0.66 – $1.33, and envisions a New All-Time High Above $1.966.” These delineations echo the marked areas on the chart, notably the “Bullish Area” and “Extra Bullish Area.”
When To Get Extra Bullish On XRP
One of the primary takeaways from the chart is the “RSI Double Tap” event. For those unfamiliar, the Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. An RSI reading below 30 is typically considered oversold, while an RSI above 70 is seen as overbought. The “Double Tap” indicates that XRP has been undervalued in mid-August and mid-September, but found a strong foundation.
Further boosting the bullish sentiment is the declining trendline in the RSI that the XRP price recently broke out of, implying a potential shift in momentum. Remarkably, the RSI broke out of the downtrend for the first time at the end of September.
However, the XRP price could not keep this momentum, and as a result, the RSI once again fell below the trend line drawn by Dark Defender. But in recent days, another breakout has occurred, which could predict bullish price movements.
Moving onto the price action, the chart depicts XRP’s consistent interaction with the Ichimoku Cloud, a renowned technical tool that offers insights on support, resistance, and momentum. The fact that XRP is inching closer to entering the ‘Bullish Area’ of the Ichimoku Cloud is quite significant. This could mean that the asset is on the verge of a bullish reversal if it climbs back above $0.52.
Moreover, the chart also demarcates two distinct areas labeled “Bullish Area” and “Extra Bullish Area.” The latter is situated between the $0.66 and $1.33 mark, suggesting that if XRP manages to break above the lower boundary and hold above this price point, we might witness intensified bullish momentum. The XRP price could then more than double before major resistance is expected at the $1.33 level by Dark Defender.
Additionally, the Fibonacci retracement levels, drawn from the peak to the trough of the price movement, emphasize the 50% level at $0.5286 as a critical resistance point. Breaking through this level might propel XRP toward the “Extra Bullish Area” as specified by the analyst.
Concluding his tweet, Dark Defender aptly stated, “The clock is ticking,” indicating the expectation that the cryptocurrency could perform a strong bullish move into the “Bullish Area” between $0.55 and $0.66 at any time.
In summation, while the crypto market remains unpredictable, the technical indicators for XRP, combined with Dark Defender’s analysis, suggest a promising bullish trajectory. But as always, investors should conduct thorough research and remain cautious in their investment decisions.
At press time, XRP traded at $0.4888.
Featured image from Shutterstock, chart from TradingView.com