The XRP price remains one remarkable display of strength despite the correction phase, as the price rose above $2.8 on December 3 for the first time in almost seven years.
Interestingly, technical analysis shows that the correction phase is highlighted by an ABC correction pattern on the daily candlestick chart. Consequently, the XRP price now appears to be gearing up to break to new all-time highs above $5.8 and even $18.22.
ABC corrective wave pattern nearing completion
XRP bulls do managed to stay above $2 since early December in what appears to be a new price bottom for the cryptocurrency. According to technical analysis of the XRP price by crypto analyst Dark Defender, this corrective phase took place in three waves A, B and C.
The ABC correction pattern is a structure often seen during consolidations before a continuation of the primary trend. Waves A and C were correction waves for the downtrend, while wave B was highlighted by an upward move. Furthermore, the analysis shows that these up-and-down moves were limited below a daily resistance trendline.
As it stands, XRP’s price movements over the past two days have been bullish in nature and the cryptocurrency is now poised to break above the daily resistance trendline. As Dark Defender noted, XRP has almost completed its display of the ABC corrective wave pattern.
The analyst pointed out that the confirmation of this pattern depends on the ability of the XRP price to break the critical resistance level at $2.52. Recent XRP price movements suggest that this breakthrough is expected to be achieved soon, with Dark Defender expecting the move to occur within the next 24 hours. If this materializes, it could mark the start of a new bullish phase, with an initial target of $5.85.
Off to $5.85 and on to $18.22
Dark Defender outlined a two-phase price trajectory for XRP after the expected outbreak. The first significant resistance zone is at $5.85, which matches the target highlighted by the Fibonacci extension indicator. Reaching the $5.85 price level would necessitate breaking above the current all-time XRP price of $3.40, which has held the longest among cryptocurrencies.
Furthermore, such a move would result in the XRP market cap reaching the trillion dollar threshold from its current fully diluted value of $244.03 billion. However, the analyst predicted that breaching $5.85 would open the door for a sustained rally towards $18.22.
At the time of writing, XRP is trading at $2.44, having risen about 5% in the last 24 hours. Reaching the price targets of $5.85 and $18.22 would translate into an upside of 140% and 645%, respectively, from the current price level.
Featured image created with Dall.E, chart from Tradingview.com