Bitstamp was rocked with chaos on Thursday as XRP plunged to its all-time low of $0.38249 on Bitstamp, reflecting a larger bear trend impacting altcoin markets. A 12.4% decrease over 24 hours shows how crucial support may be; yet Dark Defender (@DefendDark), one of X’s prominent analysts maintained bullish hopes regarding future prospects of XRP despite such substantial fluctuations.
Dark Defender notes on his analysis of XRP/USD charts over one month that their price must stay above $0.3917 to remain under $0.4623 and demonstrate resilience at key support levels such as Points of Control (POC). This observation shows how resilient the price has remained even at key support levels such as this point in its path upwards.
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The Point of Convergence for trading activity since 2014 stands at $0.3917 and serves as the focal point of trader consensus regarding value – historically providing strong foundation for price. Recent touches with this level suggest an opportunity to test bullish sentiment and possibly reverse downward trends.
Dark Defender’s chart includes Fibonacci retracement levels to provide valuable support and resistance areas based on historical price movements. According to Dark Defender, $0.4623 represents 38.20% Fibonacci retracement; should XRP breach this threshold it could open the way to more gains towards higher Fibonacci levels such as $0.6649 (70.20% Retracements) or even $1.8815 (161.80% Retracements).
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The volume profile on the chart highlights an active trading environment near and around the POC. A high trading activity level at lower prices signals strong buyer interest that could prevent further falls while creating a secure foundation of support for further falls in prices.
Dark Defender presents evidence for XRP to experience a bullish turnaround, specifically at $0.3917 where support levels appear resilient along with oversold conditions in its relative strength index (RSI) as well as historical trading volume at this price point. These factors combined provide potential signs that it might experience upward momentum.
As the market digests these levels, its ability to maintain above $0.3917 will play a pivotal role in shaping its short-term price trajectory, potentially following in the footsteps of 2014-2017 recovery phases wherein XRP rallied by over 6,600% from below $0.006 up to $0.40 over nine months.
Dark Defender’s closing comment that, “the 2014-2017 pattern is still identical unless $0.3917 is protected… I will keep you up-to-date,” underscores its crucial nature for market dynamics and stability. At press time, XRP traded at $0.41042.
XRP dropped below $0.40 per token with one day chart from TradingView, as shown here (image made with DALL*E and chart taken from TradingView.)
