XRP breaks triangle support, analyst maintains $1.88 and $2.90 targets

XRP’s slide from the triangle pattern

According to Dark Defender, XRP had been consolidating within a symmetrical triangle structure on the daily chart. This pattern was outlined by two converging trendlines, connecting the peak of wave (1) near $1.70 in August and the trough of wave (2) around $1.29 in September. The price remained inside the triangle for several weeks before breaking downward.

The recent breakout saw XRP decline by $0.08, a move the analyst described as a normal part of market structure. Emphasizing that his longer-term targets remain unchanged, Dark Defender urged followers not to be alarmed by this retracement.

Dark Defender observed that the third wave setup will remain valid as long as XRP closes above $1.5692. He suggested that the path to his upside targets relies on the token regaining this threshold.

Key support and resistance levels

He highlighted $1.5692 as a pivotal level, referencing its role as the 85.40% Fibonacci retracement. The analyst advised that a daily close above this point would signal a resumption of the bullish count. Should the price falter, buyers may look to defend support at $1.4445 and $1.3798, which correspond to the 70.20% and 61.80% Fibonacci retracement levels, respectively. Both sit below the current price of $1.4164.

Further downside could see XRP reaching $1.2939, the location of the 50% Fibonacci retracement, although Dark Defender did not designate this as a primary support level.

Targets for potential rebound

Upside objectives remain unchanged for Dark Defender. The analyst identified $1.8815 as the first target, corresponding to the 161.80% Fibonacci extension. The next target is $2.9032 at the 200% extension. These goals are based on the expectation that the third wave bullish scenario reactivates if XRP can regain and hold above $1.5692.

Dark Defender reassured XRP holders that his previously stated price targets have not changed, provided that the price structure confirms a continued bullish trend above his key levels.

Daily RSI offers additional perspective

The daily Relative Strength Index (RSI) for XRP exceeded 70 during the rally to wave (1) earlier in August. Following the recent decline, the RSI has retreated into the mid-40s, indicating the market has unwound some of its overbought conditions. This pullback allows room for renewed momentum should a rebound occur.

Mini dictionary: RSI (Relative Strength Index) — A technical indicator measuring the speed and change of price movements, typically used to identify overbought or oversold conditions in financial markets.

Outlook remains constructive

Despite the downward break, Dark Defender reiterated his constructive stance, stating that as long as XRP remains above $1.3798 and can reclaim $1.5692, the scenario for a bullish third wave continues. Reaching $1.8815 and $2.9032 would represent the next stages if these criteria are satisfied.