The broader crypto market collapse has pulled XRP below the pivotal $0.50 support, but analyst Dark Defender still projects a surge above $5, citing Elliott Wave structure.
XRP continues to face challenges in regaining its footing above the $0.50 mark after its recent dip during the latest market downturn. Despite this, market analysts like Dark Defender remain optimistic about XRP’s long-term potential.
In a recent analysis on X, Dark Defender highlighted several key indicators that suggest XRP could experience significant gains in the future. He leveraged the Elliott Wave Theory, a technical analysis tool that identifies recurring wave patterns in market movements, to support his positive outlook.
Hi all, Let’s examine the “Turning Point of the Story” statement on the XRP Weekly Chart.
1. Exponential Moving Averages of 100 and 50 weeks are bullish for XRP. Since XRP has continued sideways, we still maintain our 5-Wave Structure.
2. The Fisher indicator, a highly… pic.twitter.com/xEj2GVWJIZ
— Dark Defender (@DefendDark) June 19, 2024
Dark Defender focused on the 100-week and 50-week Exponential Moving Averages (EMAs). These EMAs are critical in assessing long-term trends. Currently, both the 100-week and 50-week EMAs are positioned in a bullish alignment for XRP. This means that, despite the current sideways movement, the overall trend remains positive according to these moving averages.
XRP Currently Oversold
Next, he discussed the Fisher Transform indicator, a tool for predicting trend reversals. The Fisher Transform is useful because it converts prices into a Gaussian normal distribution, making it easier to spot significant changes. According to Dark Defender, this indicator has bolstered the analysis by suggesting a potential reversal for XRP.
Although there was an indication of a reversal a few weeks ago, it turned out to be a false signal. The price of XRP fluctuated between $0.44 and $0.53 during this period. However, the Fisher Transform has now moved into a more oversold area, which often precedes a price rebound.
Dark Defender pointed out that the Fisher Transform has issued a second reversal signal for XRP. This, combined with the continued bullish trend shown by the 100-week and 50-week EMAs, strengthens his positive outlook for the cryptocurrency.
In addition, XRP’s Stochastic Relative Strength Index (RSI) has a weekly reading of 4.5 (K) and 10.9 (D). This indicates that XRP is in a highly oversold state, suggesting that the asset may be due for a price reversal or a rebound, as it signals that selling pressure might be exhausted.
Elliott Wave Pattern Points to a Surge Above $5
The analyst stressed that the price is currently above a crucial support level, and the reversal indicator has turned green, further suggesting a potential upward movement.
Moreover, in his analysis, Dark Defender called attention to the formation of an Elliott Wave structure on the weekly timeframe. Notably, 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 points towards a potential price surge that could see XRP rise above $5. In addition to the effects of the third wave, this optimism is rooted in the strong technical indicators that he has identified. Meanwhile, XRP currently changes hands at $0.4938, up 0.4% in the past 24 hours.
