In a recent analysis, crypto analyst Dark Defender highlights a significant pattern in the daily XRP/USDT chart that suggests a potential sharp rise in the price of XRP. According to his insights, XRP might be forming a technical pattern known as a “bull flag” after decisively breaking above the multi-year resistance at $0.6649, bolstered by two consecutive daily closes above this pivotal level.
A “bull flag” pattern emerges when the price of an asset experiences a sharp upward movement, followed by a period of consolidation within a narrow, downward-sloping range that resembles a flag on a pole. This pattern is typically regarded as a continuation pattern, indicating that, after the consolidation phase, the price is likely to break out upwards in line with the initial sharp move. For XRP, the flagpole was created by the steep price surge from $0.52 leading up to the break above $0.6649.
Dark Defender also notes the Relative Strength Index (RSI), which currently sits in the overbought territory at 84. An overbought RSI often signals that the asset might temporarily halt its upward trend or consolidate due to short-term selling pressure as traders take profits. This aligns with the consolidation phase expected in the bull flag pattern. However, an overbought RSI in this context can also indicate strong underlying momentum, suggesting that once consolidation completes, an upward breakout could follow.
Dark Defender identifies the next substantial price target at $1.03, which could be achieved swiftly if XRP surpasses the immediate resistance near $0.7496. Specifically, minor touches or closings above $0.7496, with potential surges to $0.76 or higher, are critical for this bullish scenario to unfold. Should these conditions be met, Dark Defender anticipates that XRP’s price could rally to $1.03 within the week.
The analysis also relies on an understanding of Fibonacci levels, extensively used in crypto trading to predict potential support and resistance levels based on prior market movements. The level at $0.6649, now surpassed, likely represents a 70.20% retracement from the previous market high to low. If breached to the downside, the bull flag pattern might extend further downward, with the 61.80% and 50% Fibonacci levels at $0.6044 and $0.5286 potentially serving as support zones from which XRP could rally above $1.
The analyst states: “XRP closed 2 days in a row above $0.6649. Now we can say this Fibonacci Level is dead, too. There are no more substantial levels than this until $1.03. If we see touches above $0.7496, such as $0.76 or more, we can quickly expect the $1.03 this week. This is not financial advice but my expectation. Remember, XRP broke the multi-year (7) resistance of $0.6649 in NOVEMBER 2024.”
Dark Defender’s optimistic outlook hinges on critical technical signals and market momentum, presenting a potentially bullish scenario for XRP in the immediate future.
