XRP is currently trading close to its final support levels amid the recent correction, with a potential to surge to $5.85 once the correction ends, according to notable analyst Dark Defender.
Dark Defender highlighted the current situation in his latest XRP analysis report on X (formerly Twitter). The analyst leveraged the daily chart to make his projections, building on previous reports on XRP’s movements within three waves.
Hi there. We discussed #XRP stopped @ $0.93 & named as Wave 1, proceeding with Wave 2, corrective.
On the 2nd of Sep, we called the final supports in sight: $0.46 & $0.39.
XRP is now hovering on $0.46 support, if we see below this the final support will be at $0.39.
Then I… pic.twitter.com/pdtFvC8Szt
— Dark Defender (@DefendDark) September 12, 2023
Wave 1: Upsurge
He pointed out that XRP had previously halted at $0.93 during Wave 1 of its price action. Notably, he had set a target of $1.33 for Wave 1, but when XRP soared on July 13 following the lawsuit victory, it hit a major resistance point at $0.93.
As previously disclosed by The Crypto Basic, Dark Defender had to revise his targets because of XRP’s inability to claim $1.33 on Wave 1. The new targets were more bullish than the previous ones.
Wave 2: Correction
The analyst noted at the time that, after Wave 1, XRP would slip into Wave 2, which brings a correction to its rally. This projection materialized, with XRP currently 48% down from the yearly peak of $0.93.
XRP remains within the confines of the corrective Wave 2. On Sept. 2, Dark Defender emphasized that the last support points for XRP amid the correction are $0.46 and $0.39.
In the latest analysis, he confirmed that XRP is hovering around $0.46 following the recent break below $0.50. He says $0.39 is the ultimate safety net in case the bears breach below the $0.46 support threshold. This would mark the end of Wave 2.
Wave 3: Rally
Dark Defender’s projection suggests that the conclusion of this Wave 2 correction will herald the onset of Wave 3. Wave 3 is expected to usher in a more momentous rally, with ambitious price targets of $1.88 and $5.85 firmly in mind.
Currently trading for $0.4760, XRP would need to increase by 294% to hit $1.88. In addition, a rally to $5.85 would require more effort, necessitating a massive 1,128% surge from $0.4760. Hitting $5.85 would mark a new all-time high for XRP.
Nebraskangooner, a prominent crypto analyst, also recently highlighted XRP’s price movements in a separate development. He cautioned against blindly chasing the market’s upward momentum and emphasized the importance of $0.50 as a critical level.
$XRP (per request)
Hopefully your favorite influencer wasn't telling you to buy the pump again.
From a trading perspective I'd be looking for a break above the outline for a potential (small) upside move.
Anything below is knife catching. Needs to hold the breakout on the… pic.twitter.com/aE7w6vq5id
— Nebraskangooner (@Nebraskangooner) September 12, 2023
He advised traders to tread cautiously below this threshold, as venturing below it could be akin to catching a falling knife. Knife catching is an attempt to buy an asset at a very low price, hoping it will immediately rebound.
The strategy is risky because it involves trying to time the exact bottom of a price drop. This practice could backfire in volatile markets, especially if one mistimes the entry.
Nebraskangooner cautions against buying XRP below the $0.50 zone without a confirmed breakout, as it carries a high level of risk. Instead, he suggests waiting for a clear sign of an upward movement to minimize potential losses.
The analyst’s chart further highlighted the significance of the region between $0.4695 and $0.4700. This tight range is a key support zone that XRP must defend to prevent further declines. XRP is trading for $0.4760, up 0.65% over the past 24 hours.