Analyst sets XRP price roadmap to $5.85 
Cryptocurrency Nov 8, 2024 Share
In the wake of Donald Trump’s U.S. presidential victory, renewed optimism has swept through the cryptocurrency market.
XRP, in particular, has become a focal point of speculation, with many believing that a Republican-led administration could foster favorable conditions for an XRP exchange-traded fund (ETF).
Amid this renewed interest, crypto analyst Dark Defender recently outlined a clear roadmap for XRP, projecting its journey from current levels to an ambitious target of $5.85, supported by multiple technical indicators.
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XRP’s path to $5.85: A Bullish projection
According to the analysis, XRP’s current movement aligns with a classic five-wave Elliott Wave pattern, often indicative of strong uptrends.
XRP price analysis chart. Source: DarkDefender/X
In Wave (1), XRP established initial bullish momentum with a significant upward move, followed by Wave (2), a corrective consolidation phase that formed a triangle pattern.
This consolidation phase has held since mid-2023, indicating an accumulation zone before a potential breakout.
XRP price’s road to $1.88
The next phase, Wave (3), is typically the most extended and powerful in the Elliott Wave sequence, where XRP is projected to break out from the consolidation pattern.
If successful, Wave (3) targets approximately $1.88, the 161.80% Fibonacci extension level. This level acts as a key resistance, aligning with the upper boundary of the Ichimoku Cloud at $0.6649.
Breaking above the cloud is a strong bullish indicator, signifying a potential trend reversal and momentum shift to the upside. This breakout would confirm a transition from consolidation to a stronger uptrend.
XRP price’s road to $5.85
Upon reaching the $1.88 level, Wave (4) may involve a corrective retracement, allowing XRP to establish support before continuing its upward movement.
The final phase, Wave (5), is projected to drive XRP to the 261.80% Fibonacci extension level at $5.85, marking the completion of the five-wave cycle. This target, if reached, would signal a full bullish progression and a potential new high for XRP.
Supporting this outlook, XRP’s weekly Relative Strength Index (RSI) shows signs of a “golden cross,” suggesting rising bullish momentum and strengthening the case for a sustained breakout through resistance.
XRP market outlook
The broader market sentiment for XRP has strengthened with Trump’s win, as investors believe that the regulatory environment under a Republican administration might be more favorable for crypto assets.
Moreover, XRP derivatives data highlights a cautiously bullish sentiment among traders. Notably, according to Coinglass data, options volume and open interest have risen by 17.41% and 16.20%, respectively, signaling increased confidence in XRP’s potential upside.
Additionally, Binance long/short ratios reveal a strong tilt toward long positions, with top trader ratios indicating a substantial lean toward price appreciation.
This skew toward long positions, coupled with rising options interest, reflects optimism among major traders for XRP’s upward trajectory, although sustained momentum will be key to solidifying a lasting bullish trend.
On the downside, XRP could encounter increased volatility, especially with Ripple’s recent transfer of 470 million XRP tokens, which may impact the token’s short-term price dynamics.
XRP price analysis
At the time of writing, XRP is trading at $0.54, reflecting a 1.2% dip over the past 24 hours. Nonetheless, it has advanced by 5% over the week and gained 2% on its monthly chart.
XRP five-day price chart. Source: Finbold
Despite the overall bullish technical structure, XRP needs to reclaim and hold above the critical $0.6 support line to sustain its upward trajectory. AI models suggest it could even reach $1 by next year if this level is secured.
For investors, closely monitoring this key support level is essential, as maintaining it will be crucial for XRP to preserve its bullish momentum and stay on track toward its projected growth.
Featured image via Shutterstock