The price of XRP has risen around 6% over the past three days, sparking renewed optimism among investors and analysts. The two analysts Dark Defender and Egrag see the current trend as a turning point.
Is the XRP price correction over?
The Dark Defender has highlighted a key development in the 4-hour period, noting the end of a corrective structure and identifying that XRP has reached an oversold area. “We can expect a move to $0.6649 first,” Dark Defender stated, referencing Fibonacci retracement levels and a 5-wave Elliott structure that remains intact, suggesting bullish potential.
This is supported by the chart showing that XRP has managed to close above a critical level of $0.6131, which aligns with Elliott Wave Theory rules for wave structures. The analyst further emphasized that the price target of $0.87 to $1.05 can still be achieved in the near term if the weekly closes remain above the $0.6131 threshold.
Egrag’s analysis. focusing in the Gaussian channel and a symmetrical triangle pattern (on the 5-day chart), which are indicative of a consolidation in the markets leading to a possible breakout. According to Egrag, “XRP Gaussian Channel and Symmetric Triangle (Strong Support and Resistance Patterns) Reveal: Within the Gaussian Channel framework, the alignment of support and resistance price targets mirrors other charts, adding weight to its importance”.
The chart provided by Egrag points to “solid support” at $0.50, with additional support levels at $0.54-0.55 (“support range”) and $0.60 (“support threshold” ). Resistance levels are identified by Egrag at a macro resistance point and a symmetrical triangular trend line between $0.83 and $0.85. Egrag advises the XRP community to hold firm, saying: “The
Combining these technical analyses, it is clear that both analysts are pointing to a convergence of technical indicators that suggest a bullish reversal for XRP. Dark Defender’s chart analysis, with its emphasis on Elliott Wave continuation, and Egrag’s identification of Gaussian Channel patterns, point to a potential rise in price, provided it remains above certain levels of medium.
Price Analysis – 1-Day Chart
XRP 1-day chart analysis using Fibonacci retracement level shows that the price is facing strong resistance in the near term.
At the current price of $0.6194, XRP is just below the 0.382 Fibonacci retracement level at $0.627 and below the 20-day exponential moving average (EMA) at $0.625. The confluence of these two indicators represents important resistance in the short term. Surprisingly, XRP has received major support at the 50-day EMA at $0.591, which could allow the bulls to regain the upper hand.
However, for this to happen, the resistance at $0.625 needs to be broken. The next price targets could then be the 0.5 Fibonacci retracement level at $0.688 and the 0.618 Fibonacci retracement level at $0.759, which abruptly stopped the upward movement that began in early October and marked the beginning of the current consolidation.
Featured image from Shutterstock, chart from TradingView.com