XRP’s technical patterns suggest a rally could be on the horizon. An analysis by chartist Dark Defender has outlined a clear roadmap for potential gains.
The analysis indicates bullish momentum, supported by Elliott Wave Theory and Fibonacci levels, suggesting specific short-term targets. Traders are monitoring XRP’s movements closely, with attention focused on the charts for confirmation of these projections.
What you'll learn 👉
XRP Elliott Wave Theory Suggests a Bullish Outlook
Dark Defender’s chart employs Elliott Wave Theory to outline XRP’s current trajectory. The price action shows that XRP has completed waves (1) through (3). Currently, it is in wave (4), a corrective phase that includes three subwaves: (A), (B), and (C).
Hi all.
— Dark Defender (@DefendDark) January 17, 2025
XRP completed the initial ABC wave in the 4-hour chart.
Here is the updated structure for you.
Short-term targets are $3.62 and $4.55 (NFA)
Enjoy! pic.twitter.com/gyCrvP82kg
According to the analysis, wave (C) is nearly complete. This completion signals the potential start of wave (5), which is expected to push XRP higher. Fibonacci extension levels play a significant role in determining XRP’s potential price points.
The 161.8% extension level at $2.88 was already achieved during wave (3). The next target is the 261.8% extension at $3.62, coinciding with wave (5)’s projected conclusion. Additionally, the analysis points to $4.55 as a further target, reflecting strong bullish momentum. These levels align with the overall technical structure.
Support and Resistance Levels Provide Clarity
The analysis highlights a solid support zone between $2.50 and $2.88, where XRP recently found stability. This zone aligns with the Ichimoku Cloud’s lower boundary and prior consolidation.
Resistance levels are pegged at $3.62 and $4.55, marking significant hurdles for XRP’s price. The thin structure of the Ichimoku Cloud ahead suggests minimal resistance, bolstering the case for an upward move.
Read also: Dogecoin (DOGE) Starts ‘Big Move,’ Expert Predicts Rally to $5
Indicators Reinforce Positive Sentiment
The Ichimoku Cloud continues to support XRP’s bullish momentum, with the price staying above its boundaries.
Recent candlestick patterns also confirm strong buying pressure during impulsive waves. This, coupled with Fibonacci and Elliott Wave alignment, reinforces confidence in the projected targets.
At publication, XRP trades around $3.13, according to Coingecko. Despite a 6.17% drop in the last day, it remains up 33.78% over the past week. With the technical analysis pointing to $3.62 and $4.55 as key targets, traders are watching closely for the next breakout.
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