Renowned market analyst Dark Defender has recently turned the spotlight on XRP, Ripple’s native cryptocurrency. Amidst fluctuating market conditions, XRP’s future seems to hinge on critical support and resistance levels. According to Dark Defender, while there’s potential for significant gains, risks of a downturn loom if current market trends continue.
XRP’s Market Movement
XRP, despite its bearish start to the year, shows signs of resilience. The cryptocurrency has repeatedly found support at the $0.52 mark, as indicated by its consistent response to this price level on the daily charts.
Moreover, the Relative Strength Index (RSI) suggests that the cryptocurrency is nearing the oversold territory, hinting at a possible price rebound. However, concerns arise with the potential extension of the 2nd Elliott Wave. If the markets remain bearish, XRP could see its value dip as low as $0.39.
XRP/USD price chart
In contrast, there’s anticipation for a bullish 3rd Wave, aiming for highs of $1.88 and $5.85 as a result, presenting a complex picture for investors.. These targets have remained unchanged, underscoring a persistent optimism about XRP’s long-term prospects.
However, on the other hand, immediate resistance lies ahead at $0.60, a crucial juncture for XRP’s short-term trajectory. Breaking this resistance could pave the way for further gains, with the next significant level at $0.6649.
Catalyst Influencing Trend
Several factors contribute to the uncertain future of XRP. Whale movements and Ripple’s monthly sell-offs have historically impacted its price. The ongoing SEC vs. Ripple case also casts a shadow over investor confidence. Ali Martinez, another prominent cryptocurrency trading expert, echoes concerns of a possible sell-off, with a breakdown below the $0.55 support level potentially triggering a descent to $0.34.
At press time, bearish momentum had been nullified after support at the intra-day low of $0.5239 proved stiff to breach. Consequently, XRP exchanged hands at $0.5488, a 1.88% surge from the 24-hour low.
XRP/USD 24-hour price chart (source: CoinMarketCap)
Despite current challenges, the broader perspective on XRP remains optimistic. The coin has demonstrated a year-long uptrend, with a 42.09% growth over the past year. This performance suggests underlying strength and resilience, even as short-term fluctuations cause ripples of concern among investors.
