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XRP is holding strong at the level where its entire correction ended, and this is exactly why well-known trader "Dark Defender" reopened the $6 discussion. The last drop stopped at the 161.80% Fibonacci zone, the price bounced right back from it and XRP has not gone there since.
From this reaction, the analyst built a direct price path that leads to the $5.85-$6 region for the XRP price.
The setup is simple. The A-B-C correction is all done. The final C-leg bottomed out right in the deep retracement pocket, where strong reversals often show up. After touching it, XRP had a clear bounce. On the same day, the RSI went up from its lowest reading of the year, confirming that the declining phase lost force.
The whole projection depends on one line that is above the current price. This diagonal resistance has been stopping every rally since summer. XRP tried a few times and did not quite make it. The trader links the whole $6 scenario to this line.
If XRP finally breaks through and closes above it with purpose, the next steps are simply a matter of execution.
Key XRP levels to watch
First area: $2.22. Second area: around $3. Final stretch: The numbers are between $5.85 and $6, and they are taken from the higher Fibonacci extensions that match the scale of the previous waves.
The long channel that has guided the price of XRP throughout the year supports the same idea. The upper boundary of that channel is pretty close to the trader's high target. When the price stays on both sides of the channel for a while, the upper band becomes a good target.
It all narrows down to one breakout. If XRP clears the diagonal that rejected it all summer, the chart opens the next section cleanly. If it fails again, the market stays in the same range until the next attempt.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team