The past 24 hours have been challenging for XRP holders. A sharp 5.8% decline in price has brought the asset close to testing critical support around $2, with selling pressure currently dominating XRP’s trading volume. The sentiment is turning bearish, but one analyst is confident in the cryptocurrency’s long-term trajectory, predicting that the altcoin is still on track to reach new all-time highs.
Analyst Highlights $2.222 As Breakout Level To Watch
Renowned crypto analyst Dark Defender took to social media platform X to reiterate his bullish outlook on XRP, even as the token grapples with short-term volatility. According to him, the token has reached its lowest Fibonacci level after the recent downturn, hinting that this could be a major pivot point. He described $2.222 as a significant resistance level, suggesting that a breakout above it could usher in a wave of renewed bullish momentum.
During the time of his post, XRP was trading at approximately $2.18, having just pulled back after facing rejection at $2.46. This rejection marked the start of a fresh decline, one that ultimately brought XRP down to the lowest Fibonacci threshold laid out in his earlier projections. However, Dark Defender added that the altcoin might not yet be done with its retracement phase. He noted that there remains a possibility of a further dip toward $2.04, which he previously identified as the final Fibonacci level in the current structure.
As of now, the altcoin is hovering just around this $2.04 zone, making it a decisive area for the bulls. Whether this level holds or gives way could determine the short-term direction of XRP’s price movement.
$5 To $8 Still In Play For XRP As Wave 5 Target Despite Bearish Momentum
Despite the ongoing price correction, Dark Defender maintained his forecast of an XRP price range of $5 to $8, aligning this target with the expected completion of the ongoing fifth wave in the Elliott Wave count structure. The current wave structure suggests that April and May could be the months where it sees explosive growth, even as most traders are now adopting a bearish stance.
This bearish stance is particularly notable in the crypto market Fear and Greed Index, which is now at a fear level of 24. However, Dark Defender noted that bearish market sentiment is not necessarily a bad sign. In fact, he described the prevailing bearish outlook held by 90% of market participants as “excellent,” implying that it might set the stage for a surprise reversal.
At the time of writing, XRP is trading at approximately $2.05, having lost 5.7% in the last 24 hours and over 15.8% in the past week. Trading volume has also been down by 17% in the past 24 hours.
Featured image from iStock, chart from Tradingview.com
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