In a tumultuous day for cryptocurrencies, the price of XRP plummeted to a low of $0.38249 on Bitstamp, reflecting a broader downtrend affecting the altcoin market. With a notable 12.4% decrease in the last 24 hours, XRP is facing crucial support. Despite this substantial decline, Dark Defender (@DefendDark), a noted crypto analyst on X, continues to uphold a bullish outlook on XRP’s future prospects.
XRP Price Needs To Hold $0.39
In his analysis of the 1-month XRP/USD chart, Dark Defender notes specific key levels and indicators. He points out that “XRP hit our last support level of $0.3917 after staying under $0.4623 for 3 consecutive candles.” This observation is crucial as it highlights the resilience of XRP at a significant support level—the Point of Control (POC).
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The POC, where Dark Defender indicates “Green Dotted Line – the price level where most trades took place since 2014,” stands at $0.3917. This level serves as a focal point for trader consensus on value, historically providing a strong foundation for the price. The recent touch of this level suggests a testing ground where bullish sentiments could potentially stabilize and reverse the downtrend.
The chart by Dark Defender also includes Fibonacci retracement levels, which are pivotal in identifying potential support and resistance areas based on previous price movements. According to Dark Defender, the $0.4623 level, corresponding to the 38.20% Fibonacci retracement, poses a significant resistance. Should XRP rise above this threshold, it might pave the way for further gains towards higher Fibonacci levels such as $0.6649 and $1.8815, which correspond to 70.20% and 161.80% retracements, respectively.
Dark Defender highlights the Relative Strength Index (RSI), stating, “XRP Daily & weekly RSI are at the bottom and oversold.” This indicates that the asset is potentially undervalued, and such conditions often precede a price recovery. He also compares the current monthly RSI levels to those seen during major market bottoms in March 2020 and November 2022, suggesting a possible repeat of the recovery patterns observed during those periods.
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The volume profile on the chart underscores the presence of substantial trading activity at and around the POC. This high volume at lower prices signals robust buying interest, which could cushion further drops and establish a strong support base.
Overall, Dark Defender presents a case for a potential bullish reversal for XRP. His scrutiny of support levels, particularly the resilience at $0.3917, coupled with oversold RSI conditions and a historically significant trading volume at this price, paints a picture of possible upward momentum.
As the market digests these levels, the ability to sustain above $0.3917 will be critical in determining its short-term price trajectory, potentially mirroring the recovery phases of 2014-2017. From March till Mai 2017, XRP rallied by more than 6,600% from below $0.006 to $0.40.
If history repeats, the XRP price could be set for a massive rally. However, Dark Defender’s closing remark, “The 2014-2017 pattern is still identical unless the $0.3917 is not protected. I will keep you updated,” underscores the pivotal nature of this support level in the ongoing market dynamics.
At press time, XRP traded at $0.41042.
Featured image created with DALL·E, chart from TradingView.com