The weekly chart for XRP has compressed into a decisive structure that now sits on the edge of a major move, and the latest projection from crypto analyst Dark Defender outlines how this structure could push to as high as $36 this bull cycle. His outlook centers on an Elliott Wave pattern that started forming in June, and the chart behind the analysis shows a sequence that is approaching the point where momentum returns with force.
Elliott Wave Structure Points To A Wave Three Expansion
Technical analysis of the XRP’s weekly candlestick timeframe chart shows that the cryptocurrency has spent the past several months compressing inside a tightening structure, forming a narrowing support and resistance triangle. This analysis attempts to map out where this pressure leads next, particularly as XRP is now trading around the peak of this triangle, where volatility could return in force.
Dark Defender’s projection is built on a five-wave Elliott structure that traces its origin back to mid-June, when XRP delivered its initial impulsive rally that formed Wave One. That first advance carried the price on a rally from the lower ranges into a new all-time high of $3.65 before losing steam.Â
Since then, the second wave, which is naturally corrective based on the theory, has dragged the price action sideways to create lower highs beneath descending resistance and higher lows above the support.Â
The chart below shows that this corrective phase is now entering its final stretch, with candles clustering inside the narrowing triangle.Â
The technical message is straightforward: once the correction exhausts itself, the next phase of the Elliott count would be a Wave Three expansion. This third wave is the strongest and longest of the five waves, and it often receives the largest percentage gains in the entire cycle.
The Breakout Zone: $2.22 Support And $2.85 Resistance
The analysis marks two levels that now define XRP’s breakout conditions. The support band around $2.22 has held firm throughout the entire consolidation, providing the foundation of the structure. The resistance line is at $2.85, and this has capped every rally attempt since the summer.Â
A weekly close above $2.85 is the trigger that would officially transition XRP out of Wave 2 and into the impulsive third wave. Any break below $2.22 would delay the bullish outlook.
The Fibonacci extension levels on the chart indicate the next significant checkpoints after the Wave 3 expansion starts. The first leg of the anticipated impulse, the 261.8% extension, is located close to $5.85. However, the wider Wave 3 target is located at the 361.8% level around $18.22.
Following this, the Wave 4 pullback is expected to cool the momentum before the final Wave 5 impulse completes the broader structure. The final wave reaches into the 423.6% extension, which is positioned around $36.76 on the price chart.Â
At the time of writing, XRP is trading at $2.31, down by 8.2% in the past 24 hours.
