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Crypto analyst Dark Defender (@DefendDark) has issued a bullish forecast For XRP, the price is projected to rise above $5.85 based on a confluence of technical indicators and chart patterns. Despite the recent market stagnation, analysts highlight several key factors – including the application of Elliott Wave theory – that suggest a significant rise is imminent.
Why XRP Still Looks ‘Super Bullish’
According to Dark Defender, the XRP price is currently determined by three trend lines. Two of these trend lines form a symmetrical triangle pattern, while the third – a downward sloping orange line – represents a long-term downtrend that XRP recently broke out on the monthly charts.
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The symmetrical triangle formed by two converging trend lines shows a 4-year long period of consolidation. This pattern is generally considered a continuation pattern, meaning that the price on the breakout is likely to continue in the direction of the current trend. In the case of XRP, the price has tried to move upwards several times – without success so far.
The third trendline, a downward sloping orange line, has been acting as a key resistance level for XRP since the summer of 2021. The fact that XRP has broken above this long-term downtrend line on the monthly charts is a strong bullish sign. This breakout signals a shift in market sentiment from bearish to bullish, potentially leading to a substantial price increase.
Integral to Dark Defender’s analysis is the application of Elliott Wave theory to XRP’s price action. The chart shared by the analyst displays Elliott Wave counts that suggest XRP is set to enter a Wave 3 impulse move, which is historically the most powerful and extended wave in a five-wave trend sequence.
In this context, the analyst believes that XRP has completed Wave 2 – a corrective phase characterized by downward price movement – and is now embarking on Wave 3. This wave is often marked by strong momentum and increased market participation, which potentially explains the anticipated bounce above. $5.85.
The projected target usually aligns with Fibonacci extension levels associated with Wave 3 movements, providing a technical basis for significant price increases. In the short term, the 70.2% Fibonacci price level at $0.6649 is the most important resistance for XRP. If this barrier is broken, wave 3 may be confirmed. The first major extension target will be the 161.8% Fibonacci level at $1.88. The ultimate target could be the 261.8% Fibonacci level at $5.85.
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The analyst also notes that Heikin Ashi candles are currently averaging $0.57 on the monthly charts. Dark Defender notes, “When considering Heikin Ashi candles (average-value candles, currently at $0.57), the monthly average price remains above the support level, which is important for XRP to continue the momentum. Is.”
Additionally, the Moving Average Convergence Divergence (MACD) indicator on the monthly time frame has printed a green dot, which is a bullish signal indicating increasing upward momentum. MACD is a momentum oscillator that helps traders identify potential trend reversals. A green dot typically indicates that the MACD line has passed above the signal line, indicating a positive change in momentum.
Ultimately, Dark Defender argues that XRP’s price action is largely independent of external news events, including developments related to the SEC lawsuit against Ripple. While acknowledging that such news may have a minor impact, the analyst argues that technical patterns and indicators have a greater impact on XRP’s movements.
“As most expected, nothing happened after the appeal decision. XRP was currently at around $0.60+ levels at the top of the Ichimoku clouds and bounced back to $0.50+ from there. I am bullish; Why? As I always highlight, XRP does not follow any news like the SEC. Well, they have a little influence, but that’s all,” notes the Dark Defender.
Based on the technical factors mentioned – which include the breakout above the long-term downtrend line, the significance of the symmetrical triangle, the importance of the Heikin Ashi monthly average price, bullish signals from the MACD, and the Elliott Wave count – Dark Defender is “Super Bullish” on XRP. The analyst estimates that the asset will follow the historical pattern that will take the price above $5.85.
At press time, XRP was trading at $0.53.
Featured image created with DALL.E, chart from tradingview.com
