Weekly XRP chart compressed into a decisive structure that now he’s sitting on the edge represents a earnest move, and the latest forecast from cryptocurrency analyst Shadowy Defender outlines how this structure could rise as high as $36 in this bull cycle. His predictions focus on the Elliott Wave pattern that began to form in June, and the chart underlying the analysis shows the sequence approaching the point where the momentum returns with force.
The Elliott wave structure indicates the expansion of the third wave
Technical analysis of the XRP weekly candlestick chart shows that the cryptocurrency has spent the last few months compressing inside a tightening structure, forming a narrowing triangle of support and resistance. This analysis aims to determine where this pressure will lead next, especially since XRP is currently near the top of this triangle where volatility may return to force.
Projection of the Shadowy Protector is built on a five-wave Elliott structure that dates back to mid-June when XRP delivered its initial impulsive rally that created Wave One. With this initial rally, the price rose from lower ranges to a recent all-time high of $3.65 before losing steam.
Since then, the second wave, which theory suggests is naturally corrective, has dragged price action sideways, creating lower highs below descending resistance and higher lows above support.
The chart below shows that this corrective phase is now entering its final stage, with the candles clustered inside a tapering triangle.
The technical message is plain: after the correction has exhausted itself, the next phase of Elliott counting will be the extension of Wave Three. This third wave is the strongest and longest of the five waves and often achieves the largest percentage boost throughout the cycle.
Breakout zone: support at $2.22 and resistance at $2.85
The analysis identifies two levels that currently define XRP’s breakout conditions. The support band around $2.22 remained unchanged throughout the consolidation, providing the basis for this structure. The resistance line is at $2.85 and has been the limit to every rally attempt since the summer.
AND week close above $2.85 is the trigger that will officially take XRP from Wave 2 to an impulsive third wave. Any break below $2.22 would delay the bullish outlook.
The Fibonacci extension levels on the chart indicate the next critical checkpoints after the start of the Wave 3 expansion. The first part of the expected impulse, i.e. the 261.8% extension, is close to $5.85. However, the broader Wave 3 target sits at 361.8% around $18.22.
The pullback of Wave 4 is then expected to frosty momentum before the final wave of Wave 5 completes the broader pattern. The latest wave reaches to an extension of 423.6%, i.e at around $36.76 on the price chart.
At the time of writing, the price of XRP is $2.31, decrease by 8.2% in the last 24 hours.
Featured image created with Dall.E, chart from Tradingview.com
