With the recent market recovery, the XRP price has been able to confirm an important Wave 3 move that was earlier highlighted by crypto analyst Dark Defender. Since this move has been completed, it is now time for the cryptocurrency to move into the next stage of the analysis. At this junction, there is a simple roadblock to a continuation of the rally and that lies at $3.13. In the follow-up analysis, Dark Defender reveals what could happen if the XRP price were to either break or get rejected at this level.
What To Expect From The XRP Price
In the analysis, Dark Defender highlighted that there is a possibility of some downside after the XRP price hits the 3rd Wave target. This 3rd Wave target sits between $3.01 and $3.07, and the initial run-up on Tuesday had seen the cryptocurrency quickly clear this level.
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The next wave that could trigger the expected downtrend is Wave 4, which is historically bearish. This is not out of the ordinary, as a bullish wave, such as the 3rd Wave, will usually see a correction. This correction can often present an opportunity for bulls to reload while the Wave 4 plays out.
However, there is another important wave in this mix, and that is the E Wave. As the crypto analyst explains, for this wave to play out, it would be entirely dependent on where the price goes. From here, the next major level is $3.13, and that is the make-or-break level.
Now, if the bulls are able to completely break the resistance at $3.13 and continue further, then it would invalidate any bearish wave. But in the case of a full rejection and the price bouncing back, then the E wave could be triggered for the XRP price.
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In the event of an E Wave trend, the XRP price would be expected to see a steep decline. This would go through all of the important Fibonacci levels, and the crypto analyst explains that it could send the XRP price tumbling back down to as low as $2.74.
Nevertheless, for now, the D wave remains in play, suggesting stronger dominance from the bulls. Once the Wave 4 is completed, then the last and final wave, the Wave 5, is expected to play out. This is historically the most bullish wave and could be responsible for a break above $3.13.
Featured image from Dall.E, chart from TradingView.com
