XRP has recently dropped below the critical $0.50 support due to a broader crypto market collapse. Nevertheless, analysts like Dark Defender remain optimistic, projecting a surge above $5 based on the Elliott Wave pattern. Dark Defender, in his recent analysis on X, identifies key indicators that suggest significant future gains for XRP.
He employs the Elliott Wave Theory, which identifies recurring wave patterns in market movements, to support his positive outlook. He focuses on the 100-week and 50-week Exponential Moving Averages (EMAs), critical in assessing long-term trends. Currently, both EMAs are in a bullish alignment for XRP. Despite the current sideways movement, the overall trend remains positive according to these moving averages.
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XRP Presently Oversold, Predicting Reversal
Additionally, Dark Defender discusses the Fisher Transform indicator, a tool for predicting trend reversals. The Fisher Transform converts prices into a Gaussian normal distribution, making significant changes easier to spot. According to him, this indicator suggests a potential reversal for XRP. Although a previous reversal signal turned out to be false, the Fisher Transform has now moved into a more oversold area, often preceding a price rebound.
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Dark Defender notes that the Fisher Transform has issued a second reversal signal for XRP. Combined with the bullish trend shown by the 100-week and 50-week EMAs, this strengthens his positive outlook for the cryptocurrency. Furthermore, XRP’s Stochastic Relative Strength Index (RSI) shows a weekly reading of 4.5 (K) and 10.9 (D), indicating that XRP is highly oversold. This suggests that selling pressure might be exhausted, hinting at a possible price reversal or rebound.
Elliott Wave Pattern Indicates Surge Above $5
He emphasizes that XRP’s price is currently above a crucial support level, with the reversal indicator turning green, further suggesting potential upward movement. Moreover, Dark Defender highlights the formation of an Elliott Wave structure on the weekly timeframe. XRP has completed the first two of the five waves, with the third wave on the brink of materializing. He expects this third wave to push XRP to greater heights.
Dark Defender predicts a potential price surge that could see XRP rise above $5, rooted in the strong technical indicators he has identified. Meanwhile, XRP is trading at $0.4938, up 0.4% in the past 24 hours.
