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Recent technical analysis has shown that XRP price is consolidating after breaking through key resistance levels to new highs. A crypto analyst did that warned of a threatening one XRP price crashcalling on investors not to be distracted as the RSI is still significantly above 50%. He discusses his short- and long-term predictions XRP price chartsthe analyst shows that the cryptocurrency is firmly positioned in a bullish trend despite impending corrections.
XRP Price RSI Indicates a Possible Crash
On the 4-hour XRP chart, a double tick structure is highlighted in the Relative Strength Index (RSI)a technical indicator used to measure the momentum of a cryptocurrency. This double tap pattern typically signals further downward movement before one price stabilization.
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According to Dark Defender, a crypto analyst on The analyst announced that the XRP price had risen earlier found strong support for $2.17; however, the cryptocurrency experienced a jump upwards.
After reaching this support level, the The XRP price is now consolidatinga pattern often associated with a potential uptrend after a correction. Despite the small amount recovery of the marketthe analyst has warned of another impending price crash in the same support zone as the RSI approaches oversold levels again.
Earlier in December, the The RSI had reached oversold areas after a drop below 30%. Now, XRP’s RSI is above 50%, indicating a potential for a price correction between the USD 2.17 and USD 2.18 support levels. Dark Defender has revealed that this price crash could happen soon as XRP is expected to enter oversold territory within a day.
Despite this potential price correction, the analyst acknowledged that the broader outlook for XRP still looks bullish, with a continuation of the uptrend expected once the market consolidates following the expected price drop to new lows. Dark Defender also predicted that XRP’s next price target after this expected correction, it is likely to reach above $3, marking an increase of almost 40% from the $2.17 support area.
XRP 3-month chart signals a strong bullish setup
Following his predictions that the XRP price could crash if it enters oversold conditions, Dark Defender also shared a three-month chart analysis, in which he better prospects for the cryptocurrency. The chart shows that XRP recently reached a multi-year resistance level for the first time in more than five years, indicating a strong bullish shift.
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The three-month green candle structure between October and December confirms strong buying pressurepaving the way for a potentially bullish first quarter of 2025 from January to March. A rounded bottom pattern can also be seen on the XRP 3-month chart. This pattern is a classic bullish reversal structure that indicates a gradual move from a downtrend to an uptrend.
Dark Defender has highlighted several Fibonacci levels as potential price targets for XRP. According to the analyst, XRP could see a 261.80% rise to the Fibonacci level of 5.8563 between $5 and $9. After that, the analyst expects a 361.80% increase to the 18.2275 Fibonacci between $16 and $28. Support levels at the 0.6649 Fibonacci at $0.9 have also been highlighted, acting as a safety net for XRP during price corrections.
Featured image created with Dall.E, chart from Tradingview.com
