The XRP price continues to exhibit a notable display of strength despite its corrective phase since it reached above $2.8 on December 3 for the first time in almost seven years.
Interestingly, technical analysis shows the corrective phase has been highlighted by an ABC corrective pattern on the daily candlestick chart. Consequently, the XRP price now seems to be gearing up for a breakout to new all-time highs above $5.8 and as high as $18.22.
ABC Corrective Wave Pattern Nearing Completion
XRP bulls have managed to hold above the $2 mark since the beginning of December in what seems like a new price floor for the cryptocurrency. According to technical analysis of the XRP price by crypto analyst Dark Defender, this corrective phase played out in three waves A, B, and C.
The ABC corrective pattern is a structure often seen during consolidations before a continuation of the primary trend. Waves A and C were downtrend corrective waves, while Wave B was highlighted by a move to the upside. Furthermore, the analysis shows that these up-and-down movements were confined below a daily resistance trendline.
As it stands, XRP’s price movements in the past two days have been of the bullish nature, and the cryptocurrency is now on the verge of breaking above the daily resistance trendline. As Dark Defender noted, XRP has almost finalized the playout of the ABC corrective wave pattern.
The analyst pointed out that confirmation of this pattern hinges on the ability of the XRP price to break through the critical resistance level at $2.52. Recent XRP price movements suggest that this break is expected to be achieved soon, with Dark Defender projecting the move to occur within the next 24 hours. If realized, it could mark the start of a new bullish phase, with an initial target of $5.85.
Road To $5.85 And Beyond To $18.22
Dark Defender outlined a two-stage price trajectory for XRP following the anticipated breakout. The first significant resistance zone lies at $5.85, which corresponds to the target highlighted by the Fibonacci extension indicator. Reaching the $5.85 price level would necessitate breaking above the current XRP price all-time high of $3.40, which has stood longest among cryptocurrencies.
Furthermore, such a move would see the XRP market cap reaching the trillion-dollar threshold from its current fully diluted value of $244.03 billion. However, the analyst projected that breaking past $5.85 would open the door for an extended rally toward $18.22.
At the time of writing, XRP is trading at $2.44, having increased by about 5% in the past 24 hours. Reaching the $5.85 and $18.22 price targets would translate to an increase of 140% and 645%, respectively, from the current price level.
Featured image created with Dall.E, chart from Tradingview.com
