Ripple’s XRP continues to capture attention within the cryptocurrency market. Despite some recent setbacks, the cryptocurrency shows potential for a significant price surge, according to Elliott Wave analyst Dark Defender. His recent analysis suggests that XRP is undergoing a correction phase but could be primed for a powerful rally, potentially pushing its price to a new all-time high.

Currently, XRP is trading around the $2.50 mark after losing 3% of its value today and a more significant 18% over the past week. This price action has some traders on edge, but Dark Defender remains optimistic, emphasizing the broader bullish structure forming for XRP.

Elliott Wave Analysis: Key Levels to Watch

Dark Defender’s analysis focuses on XRP’s daily chart and highlights a potential five-wave Elliott Wave pattern that could drive the price to new heights. According to this pattern, XRP’s price is in the second corrective wave, which has led the asset to consolidate near the $2.50 mark.

For XRP to continue its upward trajectory, the price must break the critical $3 resistance level. This price point is seen as pivotal in confirming the next phase of bullish momentum. If XRP breaks through this barrier during the third wave of the Elliott Wave pattern, the next target will be $5.85, based on a 261.8% Fibonacci extension of the price action.

The most significant potential comes from the fifth wave, where XRP could surge beyond $8, representing an impressive 220% rise from its current value. This projected price action has analysts excited about the future of XRP, as such a surge would mark a substantial rally for the digital asset.

Historical Patterns and Higher Price Predictions

Interestingly, Elliott Wave theorist Tony Severino also weighed in on XRP’s future, suggesting even more significant gains could be possible. In a previous analysis, Severino speculated that XRP could see a 35X increase, potentially reaching $20, based on its Elliott Wave pattern.

Severino pointed out that the token’s previous cycles, such as in 2014 and 2017, led to extraordinary growth. The 2017 surge, in particular, saw XRP rally by over 70,000%. Such historical precedents bolster the belief that XRP could experience another massive price movement in the future.

Technical Indicators Align with Bullish Sentiment

Aside from the Elliott Wave projections, other technical indicators also support an optimistic outlook for XRP. Analyst Steph, in a tweet, pointed out that XRP recently formed its third-ever weekly hammer candlestick pattern, a chart formation that historically precedes significant price surges. The hammer pattern, typically indicative of buyer dominance, has led to price spikes of over 2,000% in past instances.

This pattern emerged after XRP dipped to $1.76, followed by a swift recovery, reinforcing the notion that buyers have regained control. The previous two occurrences of this pattern saw XRP reach new cycle highs, which further fuels the possibility of a continued bullish trend.

The Possibility of a New All-Time High

With these technical indicators and Elliott Wave projections in mind, there is growing speculation that XRP could break its all-time high, potentially reaching prices as high as $52.50. While this $50 target is contested by some analysts, the combination of technical patterns and historical precedents suggests that a surge to $8 is certainly within the realm of possibility.

In conclusion, while XRP faces some short-term price struggles, the longer-term outlook appears bright, with the potential for substantial gains if key levels are breached. Traders and investors alike will be watching closely to see if XRP can break the $3 mark and kick off the next phase of its bullish journey.