Over the past month, XRP has emerged as one of the best-performing cryptocurrencies, gaining by double digits with a long-term target of reaching the $1 mark.
In this line, crypto analyst Dark Defender, in an X post on August 3, suggested that XRP has recently shown signs of a significant impending breakout, indicating a thrilling end to 2024 might be on the horizon.
Dark Defender highlighted that XRP closed July with a powerful bullish candle, signaling strong momentum. A key element of this analysis is the importance of maintaining above the $0.5286 level, identified as the critical last Fibonacci support line. Holding this level is essential for XRP to sustain its upward momentum.
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Furthermore, the analysis pointed out that the $0.6649 level serves as formidable Fibonacci resistance. According to the analyst, the tight gap between this support and resistance level suggests an explosive breakout could be imminent.
“The $0.6649 level posed a formidable Fibonacci Resistance, but the tight gap between Support and Resistance hints at an impending explosive breakout,” the expert noted.
The anticipation of this breakout is fueled by observed bullish patterns and the historical context of XRP’s price movements.
XRP’s role in financial markets
In the broader context of the cryptocurrency market, Dark Defender emphasized the potential role of Ripple and XRP as key catalysts. The analyst suggested they could offer a lifeline to the struggling financial system, highlighting the increasing relevance of digital assets in the global economy.
Notably, the analysis also indicated the projected path for XRP, with potential targets reaching as high as $3.799. The XRP chart outlines a possible five-wave structure, suggesting that the token could experience significant price appreciation if it follows this trajectory.
Indeed, if the bullish momentum is realized, XRP will likely target the $1 mark, which is viewed as a key anchor to the token’s rally. In addition to technical indicators, XRP investors will be awaiting the impact of the ongoing legal case between Ripple and the Securities Exchange Commission (SEC).
At the moment, Ripple remains optimistic about the remedies phase of the lawsuit, confident that the key ruling—that XRP is not a security—will stand. Market participants are particularly hopeful that a rescheduled closed-door meeting, initially set for August 7, will resolve the issue.
XRP price analysis
At the time of reporting, XRP was seeking to reclaim the $0.60 resistance. Over the past 24 hours, the asset has gained over 2%, trading at $0.55. However, XRP has also been weighed down by the recent market sell-off, with the token plunging over 5% on the weekly chart.
Overall, investors are monitoring the $0.50 support zone, as dropping below this mark could lead to a sustained sell-off.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
