The XRP daily Relative Strength Index (RSI) has also slipped into oversold territories, suggesting the asset is undervalued.
Dark Defender, a pseudonymous yet notable analyst, recently disclosed that XRP hit a correction target he previously set for the asset. The analyst asserted that XRP is now poised to embark on its next course, which should target from $0.89 to $1.42 in the short term and an ultimate price of $3.47 by year-end.
#XRP finally reached our Wave 2 correction target zone $0.42 – $0.38 by touching $0.412.
Daily RSI is oversold & weekly is close to the RSI Support.
3rd Wave will transform non-XRP believers into XRP disciples, hopefully, this summer.#XRPArmy #Ripple pic.twitter.com/u0xEST0rtd
— Dark Defender (@DefendDark) May 9, 2023
Dark Defender set up three target destinations for XRP using several waves. He revealed in previous analyses that the recent XRP rally marked Wave 1, noting that XRP will face a correction that would drop it to a price between $0.38 and $0.42. He dubbed this Wave 2.
The latest XRP correction battered the asset to a 7-week low of $0.412, hitting the correction target and confirming the completion of Wave 2. According to Dark Defender, XRP’s next target destination is enshrined in Wave 3, which should take XRP to a range between $0.89 and $1.42.
XRP RSI Slipping into Bullish Zones
Moreover, the analyst called attention to XRP’s RSI. The RSI indicates whether an asset is overbought (too expensive) or oversold (too cheap) based on recent price changes. Dark Defender disclosed that the daily RSI for XRP is oversold, which means that XRP may be undervalued or too cheap.
In addition, he highlighted that the weekly RSI for XRP is moving close to the support level. An RSI near support suggests that the asset is hitting oversold levels. It also suggests a potential price rebound, as buyers historically enter at such levels to prevent further falls.
Should XRP experience a price rebound, Dark Defender asserts that it would kickstart Wave 3, leading to a short-term price between $0.89 and $1.42. The analyst noted that Wave 3 might kick in this summer (between late June and late September), but this isn’t certain. However, in an analysis last month, he disclosed that the short-term target of $1.42 will serve as the predecessor to the “Grand Wave 3,” which should usher in the ultimate price target of $3.47 by December 2023.
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