XRP Price Analysis: Market Analyst Outlines Potential Trajectory Following Recent Correction

The token has experienced notable volatility but has demonstrated resilience amid broader market declines, driven by Bitcoin's drop.

A crypto market analyst has provided insight into XRP’s potential price trajectory after the token experienced a recent price correction.

The digital asset initially encountered a price decline but subsequently recovered, registering a 37% gain over the last seven days. This resilience is evident in XRP’s relative strength compared to other cryptocurrencies during the current correction phase, which has been largely driven by Bitcoin’s drop.

Prominent market analyst Dark Defender recently discussed XRP’s next likely moves, highlighting that the initial correction is a natural response to the token’s recent surge.

“XRP rose 200% in recent weeks, so the pullback was expected.”

Another contributing factor to the initial decline is profit-taking by South Korean investors. Data from CryptoQuant shows that around 6.6 billion XRP tokens were held on Upbit, South Korea’s largest exchange.

During the recent price rally, investors sold about 400 million XRP, valued at approximately $400 million, applying short-term selling pressure and causing the token to dip below the crucial $1.44 level.

According to Dark Defender’s analysis, using the Elliott Wave theory, the asset is currently in Wave C of a corrective phase. He identifies $1.2893 as a critical support level.

“A fall below this support could send XRP to $1.03.”

However, the token has remained above the $1 level since November 16 and has recovered from the price correction.

The analyst remains optimistic about XRP’s long-term potential, forecasting that once the correction phase ends, the token could rise to $1.88 as its next significant target. If it manages to cross this level, the asset may challenge its 2021 high of $1.96, a key resistance level. A break above $1.96 could open the door for further upward momentum.

Veteran trader Peter Brandt has also highlighted the importance of the $1.96 resistance zone. He believes breaking through this level could trigger a substantial price rally, like the surges seen during previous bull markets.

Previously, Dark Defender emphasized the significance of the $1.44 Fibonacci level, where the token had consolidated for several days. He suggested that XRP needs to close above this level for at least two consecutive days to confirm a sustained bullish trend.

XRP initially reclaimed the $1.44 level following the announcement of SEC Chair Gary Gensler’s resignation but fell below it, before recovering again. As of now, It is trading at approximately $1.49.

The asset has managed to cross the $1.44 level and is establishing strong support before targeting higher price levels like $1.88 and $2.17.

In summary, the digital asset’s future movements depend on its ability to hold key support levels and overcome critical resistance points.