Over the past month, XRP has emerged as one of the best-performing cryptocurrencies, experiencing double-digit gains while setting its sights on a long-term target of reaching $1 and beyond.
In a recent analysis, crypto analyst Dark Defender outlined a clear roadmap for XRP, projecting its journey from the current levels of around $0.6 to an ambitious target of $36.
According to the analyst, XRP’s price action is primarily driven by its technical structure rather than external factors, such as the legal battle between Ripple and the United States Securities and Exchange Commission (SEC).
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Notably, XRP is currently trading near a critical support level of $0.61, which has served as a foundation for its recent price stability. Dark Defender emphasizes that this support is crucial for maintaining XRP’s bullish momentum.
If XRP manages to hold above this level, the next immediate target is $0.66. Breaking above $0.66 would not only signal short-term bullishness but also pave the way for much higher price targets.
XRP’s key levels to watch and short-term targets
According to Dark Defender, the current chart suggests that XRP is in Wave 3, typically the most powerful wave in an Elliott Wave sequence.
The primary resistance is observed near the $0.66 mark. A sustained move above this level could push XRP towards the first mid-level target of $1.03. This level is particularly significant as it represents the threshold of the Ichimoku Cloud’s extreme Bullish Zone on the monthly chart.
Moving above $1.03 would signal a strong bullish trend, potentially triggering a more extended rally.
From here, XRP is expected to encounter resistance at $1.88, aligning with the 161.8% Fibonacci extension. Surpassing $1.88 could open the door to the next major resistance at $5.85, which has historically been a significant hurdle for price movements.
Long-term targets
The analysis suggests that if XRP maintains its bullish momentum, it could reach $18.22, the 361.80% Fibonacci extension level, and potentially aim for the final target of $36.76.
If XRP reaches a price of $36, its market capitalization would soar to approximately $2.02 trillion, representing an increase of nearly $1.99 trillion from its current market cap of $32.22 billion.
To put this into perspective, at a market cap of $2.02 trillion, XRP would surpass Bitcoin’s (BTC) current market cap of approximately $1.18 trillion. To achieve this, XRP would need to surpass Ethereum (ETH) and challenge Bitcoin’s dominance.
This would require XRP to sustain continuous growth and adoption, potentially outpacing the established giants of the cryptocurrency world, making it one of the most dominant financial assets globally, a highly ambitious target.
While these targets are ambitious, they are grounded in the extended Elliott Wave pattern that XRP appears to be following. The price action will likely experience consolidation phases at each resistance level before attempting to push higher.
Supporting this bullish outlook, the moving average convergence divergence (MACD) Monthly Indicator has turned green, indicating increasing buying momentum.
Additionally, the formation of a Dragonfly Doji candle on the monthly chart is a powerful bullish reversal signal, reinforcing the probability of a continued uptrend.
As long as XRP stays above the primary support and breaks through the identified resistance levels, these technical indicators suggest that the cryptocurrency is well-positioned for a substantial price increase.
XRP price analysis
At the time of writing, XRP was trading at $0.573, reflecting a 6% drop in the last 24 hours but advancing a modest 0.29% over the week and gaining 30% on its monthly chart.
However, it is important to note that XRP has broken below the key support level of $0.6. If the price continues to hold below this critical threshold, it could invalidate the entire bullish analysis, potentially triggering a bearish move.
Indeed, the overall technical structure remains bullish, but to sustain this outlook, XRP needs to reconquer and hold above the key $0.6 support line.
Failure to do so could undermine the bullish scenario and lead to further downside pressure. Investors should closely watch this level, as reclaiming it is essential for XRP to continue its upward trajectory.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
