XRP Technical Analysis: Insights from Market Expert

Dark Defender, an expert in technical analysis, has identified a critical level that XRP must maintain to replicate its historic rally from 2014 to 2017. According to Dark Defender, XRP recently hit a support level of $0.3917, termed as its “Point of Control (POC)”. This level represents where most XRP trades have occurred since 2014, making it a significant psychological barrier for traders.

#XRP hit our last support level of $0.3917 after staying under $0.4623 for 3 consecutive candles.

$0.3917 "Point of Control" (POC) Green Dotted Line
The price level where most trades took place since 2014

And surprisingly, #Bitcoin POC is at $1,522

So, considering Bitcoin, XRP… pic.twitter.com/9vxG63NXvw
— Dark Defender (@DefendDark) July 5, 2024

The $0.3917 support level is crucial for XRP’s price stability. Dropping below this level could trigger further declines, while maintaining it could potentially lead to a rebound in XRP’s price. Dark Defender compared XRP’s POC with Bitcoin’s, which stands at $1,522, highlighting XRP’s current proximity to its most traded price point.

Oversold Conditions and Buying Opportunities

Dark Defender utilized the Relative Strength Index (RSI) to underscore XRP’s oversold conditions. Both daily and weekly RSI readings for XRP are at the lower end of their ranges, resembling levels seen in previous market bottoms. This suggests a historical pattern where such conditions have often preceded price rebounds.

Drawing parallels with the 2014-2017 period, Dark Defender noted similarities in XRP’s current price action. This period preceded a significant rally that propelled XRP to its all-time high of $3.84. However, Dark Defender emphasized that XRP must maintain the critical support level of $0.3917 to stay on track with this historical pattern.

Recent Market Movements

Recent market movements saw XRP briefly drop below $0.4 on July 5, followed by a swift rebound to around $0.43 later in the day. As of now, XRP is trading at $0.4364, indicating a minor daily loss of 0.32%.

Dark Defender’s analysis highlights the pivotal role of the $0.3917 support level for XRP’s future price movements.

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Maintaining this level could potentially pave the way for a resurgence akin to its past performance, while breaching it might lead to further market pressure. Investors are advised to monitor these levels closely as they consider their trading strategies.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.