Latest technical analysis has shown that the XRP price is consolidating after breaking through key resistance levels to novel highs. Cryptocurrency analyst yes warned about the upcoming one XRP price collapseurging investors not to get distracted as the RSI is still well above 50%. Discussing your predictions for the tiny and long term XRP price chartsthe analyst shows that the cryptocurrency is firmly embedded in the bullish trend despite impending corrections.

XRP Price RSI Indicates a Potential Crash

On the 4-hour XRP chart, the double tap structure is highlighted in Relative Strength Index (RSI)a technical indicator used to measure the dynamics of a cryptocurrency. This double tap pattern usually signals further downward movement before a price stabilization.

According to Obscure Defender, a cryptocurrency analyst at X (formerly Twitter), repeated RSI declines into oversold territory indicate that XRP may experience a price collapse to novel lows. The analyst revealed that the price of XRP was already high she found forceful support at $2.17; however, the cryptocurrency has rebounded.

Once this level of support is reached, The price of XRP is currently consolidatinga pattern often associated with a potential uptrend following a correction. Despite being airy market revivalthe analyst warned of another impending price crash in the same support zone as the RSI approaches oversold levels again.

Earlier in December RSI has reached oversold areas after falling below 30%. Currently, XRP’s RSI is above 50% and signals the potential for a price correction between the $2.17 and $2.18 support levels. Obscure Defender revealed that this price crash could happen soon as XRP is expected to enter oversold territory within a day.

Despite this potential price correction, the analyst admitted that the broader outlook for XRP continues to look bullish, with the uptrend expected to continue as the market consolidates following the expected price decline to novel lows. Obscure Defender also predicted this Next XRP price target following this anticipated correction, it is likely to exceed $3, an augment of almost 40% from the $2.17 support area.

XRP 3-month chart signals a forceful bullish setup

Following its prediction that the XRP price could crash once it enters an oversold state, Obscure Defender also shared a 3-month chart analysis showing brighter prospects for cryptocurrency. The chart shows that XRP has recently broken through multi-year resistance level for the first time in over five years, signaling a forceful bullish turn.

This is confirmed by the three-month structure of green candles in the period from October to December forceful purchasing pressuresetting the stage for a potentially bullish first quarter of 2025 from January to March. AND rounded pattern at the bottom can also be seen on the 3-month XRP chart. This pattern is a classic bullish reversal structure that indicates a gradual transition from a downtrend to an uptrend.

Obscure Defender ticked a few Fibonacci levels as potential price targets for XRP. According to the analyst, XRP could see a 261.80% upside to the Fibonacci level of 5.8563 in the range of $5 to $9. The analyst then expects a 361.80% upside to the Fibonacci level of 18.2275 in the range of $16 to $28. It also highlighted support levels at 0.6649 Fibonacci at $0.9, which act as a hedge for XRP during price corrections.

Featured image created with Dall.E, chart from Tradingview.com