XRP recently sparked concerns in the crypto community over the future of the token after losing the $0.40 support level. However, analysts project there might be more upside potential for the asset.
Currently, XRP is trading above the $0.40 support, with investors targeting the $0.50 resistance zone. In an X post on July 6, analyst Dark Defender outlined the token’s potential price trajectory from around the $0.40 mark to an all-time high of $18.
This projection examines the weekly time frame, highlighting critical support and resistance levels that could shape the cryptocurrency’s future.
According to the analyst, XRP has recently touched the latest Fibonacci support level at $0.3917, following the completion of the five Elliott Waves. This critical support point suggests a potential bullish reversal.
The analysis emphasized the importance of focusing on the weekly time frame, noting that as the price approaches the lowest anticipated point, any movement below $0.3917 could alter the observed structure.
XRP’s path to $18
Dark Defender also noted that the Ichimoku Cloud provides context for potential support and resistance zones. The Ichimoku Cloud, a comprehensive indicator that identifies trends, support, and resistance levels, suggests that XRP’s current price action is navigating through significant resistance. A breakout above the cloud would confirm a strong bullish trend.
Based on this technical setup, the analyst projected ambitious price targets for XRP: $1.88, $5.85, and ultimately $18.22. Indeed, if XRP hits the $18.22 mark, it will reflect a whopping 4,238% increase from the current valuation.
One critical indicator supporting Dark Defender’s bullish outlook is the Relative Strength Index (RSI). The weekly RSI figures have hit their lowest points, indicating that XRP is in an oversold area. This oversold condition often precedes a price rally, suggesting that selling pressure has been exhausted and buyers may soon take control.
While the analysis presents an optimistic scenario for XRP, it also includes a caveat. Any movement below the $0.3917 support level could disrupt the observed structure, potentially invalidating the bullish setup.
At the moment, XRP is trading in tandem with the general crypto market as the community awaits further developments in the ongoing Ripple and Securities Exchange Commission (SEC) case.
Notably, the court announced new dates for motions and hearings on unresolved claims, including a misleading statement by Ripple CEO Brad Garlinghouse about his “long” position on XRP. July 8 was set as the deadline for filing a narrowed motion to seal, with a separate order to follow. Additionally, parties have until July 26 to indicate if they seek to exclude four experts’ testimonies.
XRP price analysis
At the time of reporting, XRP was trading at $0.42, having slid over 4% in the last 24 hours. On the weekly chart, the token is down 12%.
It’s worth noting that the overall market bearish sentiment has derailed XRP’s trajectory towards reclaiming the $0.50 mark. On the weekly chart, XRP hit a high of $0.48, and possible confirmation of another upward trajectory will require the token to hold above the $0.40 support.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
