In a tumultuous day for cryptocurrencies, the value of XRP plummeted to a low of $0.38249 on Bitstamp, reflecting a broader downtrend affecting the altcoin market. With a notable 12.4% lower within the final 24 hours, XRP is dealing with essential help. Regardless of this substantial decline, Darkish Defender (@DefendDark), a famous crypto analyst on X, continues to uphold a bullish outlook on XRP’s future prospects.
XRP Value Wants To Maintain $0.39
In his evaluation of the 1-month XRP/USD chart, Darkish Defender notes particular key ranges and indicators. He factors out that “XRP hit our final help degree of $0.3917 after staying below $0.4623 for 3 consecutive candles.” This statement is essential because it highlights the resilience of XRP at a big help degree—the Level of Management (POC).
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The POC, the place Darkish Defender signifies “Inexperienced Dotted Line – the value degree the place most trades befell since 2014,” stands at $0.3917. This degree serves as a focus for dealer consensus on worth, traditionally offering a powerful basis for the value. The latest contact of this degree suggests a testing floor the place bullish sentiments might doubtlessly stabilize and reverse the downtrend.
The chart by Darkish Defender additionally contains Fibonacci retracement ranges, that are pivotal in figuring out potential help and resistance areas primarily based on earlier worth actions. In accordance with Darkish Defender, the $0.4623 degree, akin to the 38.20% Fibonacci retracement, poses a big resistance. Ought to XRP rise above this threshold, it would pave the best way for additional beneficial properties in direction of greater Fibonacci ranges akin to $0.6649 and $1.8815, which correspond to 70.20% and 161.80% retracements, respectively.
Darkish Defender highlights the Relative Power Index (RSI), stating, “XRP Every day & weekly RSI are on the backside and oversold.” This means that the asset is doubtlessly undervalued, and such circumstances usually precede a worth restoration. He additionally compares the present month-to-month RSI ranges to these seen throughout main market bottoms in March 2020 and November 2022, suggesting a doable repeat of the restoration patterns noticed throughout these intervals.
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The quantity profile on the chart underscores the presence of considerable buying and selling exercise at and across the POC. This excessive quantity at decrease costs alerts sturdy shopping for curiosity, which might cushion additional drops and set up a powerful help base.
General, Darkish Defender presents a case for a possible bullish reversal for XRP. His scrutiny of help ranges, notably the resilience at $0.3917, coupled with oversold RSI circumstances and a traditionally vital buying and selling quantity at this worth, paints an image of doable upward momentum.
Because the market digests these ranges, the power to maintain above $0.3917 can be essential in figuring out its short-term worth trajectory, doubtlessly mirroring the restoration phases of 2014-2017. From March until Mai 2017, XRP rallied by greater than 6,600% from beneath $0.006 to $0.40.
If historical past repeats, the XRP worth could possibly be set for a large rally. Nonetheless, Darkish Defender’s closing comment, “The 2014-2017 sample remains to be similar until the $0.3917 shouldn’t be protected. I’ll hold you up to date,” underscores the pivotal nature of this help degree within the ongoing market dynamics.
At press time, XRP traded at $0.41042.
Featured picture created with DALL·E, chart from TradingView.com
