XRP may be warming up for its next major rally after a weeks-long corrective phase, according to analyst Dark Defender.
The third-largest cryptocurrency has been trading under $3 for over a week amid the bearish trend that has dominated market sentiment. However, technical charts are beginning to flash promising signs of a potential rebound.
XRP Completed Wave 4 Correction
In his latest chart update, Dark Defender explained that XRP is following a five-wave Elliott Wave structure on the daily timeframe. The analyst noted that XRP has completed its fourth-wave correction, which typically sets the stage for a strong fifth-wave advance.
Notably, the correction in question refers to XRP’s fall from the July rally after it soared above $3.66 during the final weeks of the month. Since then, XRP has established a low of $2.697 on September 1, a dip of over 26% from its July peak.
Dark Defender suggested that the risk of making new lows has now diminished. At press time, XRP has slightly rebounded above $2.85. Based on Fibonacci projections, the expected fifth-wave rebound could send XRP as high as $4.39, provided key support holds.
$2.85 Support Is Key
Dark Defender stressed that XRP’s bullish outlook hinges on maintaining the $2.85 support level. This zone represents the 23.6% Fibonacci retracement of the recent rally and has acted as a pivot in past price action.
As long as XRP does not close decisively below this level, the Elliott Wave structure remains intact, keeping the fifth-wave target in play.
The projection comes amid mixed sentiment in the XRP community. While some long-term holders have expressed frustration with XRP’s slow progress, analysts like Dark Defender and EGRAG continue to highlight technical setups suggesting the bull run isn’t over.
More Reasons XRP Remains Bullish
In his analysis, EGRAG shared three key factors supporting the view that XRP can reach higher targets this year:
- Monthly Structure Intact: XRP’s monthly candle formations remain strong.
- Fibonacci Support: The price continues to hold above key levels, with $1.99 acting as a solid base.
- 21 EMA Support: XRP remains above this crucial momentum indicator.
EGRAG maintains that the bull run isn’t over unless these technical structures break. He expects XRP to reach $3.90 soon, with longer-term targets of $9, $18, $23, and even $46—yielding gains of up to 1,543%.
Beyond technicals, some bullish fundamentals are also keeping XRP proponents optimistic. A widely discussed factor is the approval of XRP ETFs. A decision from the SEC is due next month.
Industry leaders, including the CEO of Canary Capital, have stated that these products could attract up to $5 billion in their debut month. Based on this optimism, some are calling for XRP prices to exceed $10.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
