Prominent pseudonymous market analyst Dark Defender recently offered a forecast for XRP, suggesting that its price could either climb to $18 or $13. This prediction is based on the Elliott Wave pattern, a well-regarded analytical tool for predicting market trends. Dark Defender expressed strong confidence in the Elliott Wave pattern’s ability to accurately predict price movements, stating that it has proven its reliability over time.
The Elliott Wave Theory is a form of technical analysis that traders use to analyze financial market cycles and forecast market trends. Ralph Nelson Elliott developed it in the late 1930s. The theory suggests that markets move in repetitive cycles, which Elliott called “waves.” These waves are the result of investor psychology and can be identified in both upward and downward market trends.
The basic structure of Elliott Wave Theory consists of five waves in the direction of the main trend, followed by three corrective waves, often labeled as 1-2-3-4-5 for the trend waves and A-B-C for the corrective waves. The five-wave pattern can be broken down into smaller wave patterns, and likewise, it itself can be part of a larger wave pattern. This fractal nature of the waves allows the theory to be applied across different time frames.
Traders and analysts use Elliott Wave Theory to identify entry and exit points, and stop-loss levels, and to gauge the future direction of the price of an asset. However, it’s worth noting that, like all forms of technical analysis, Elliott Wave Theory is not foolproof and is subject to interpretation.
One of the key observations made by Dark Defender was the absence of a direct relationship between XRP’s price and the legal outcomes for Ripple. Despite Ripple’s recent legal victories against the SEC, XRP’s price has not shown a corresponding uptick. Instead, Dark Defender noted that XRP’s price seems to be more influenced by its position in the Elliott Wave pattern, further underscoring the pattern’s reliability as a predictive tool.
According to Dark Defender, XRP is currently in the much-anticipated Wave 3 of the Elliott Wave pattern. This is a crucial stage that could set the stage for substantial price gains. At present, XRP is trading within Wave 2, with a price range between $0.46 and $0.5286. Dark Defender anticipates that XRP will break above the upper limit of $0.5286 within the week, potentially setting the stage for a move towards $0.66 in the week that follows.
In terms of specific price targets, Dark Defender expects XRP to reach a median target of $5.8563 in Wave 3 in the near term. However, this may not be the final destination for XRP. The analyst also presented the possibility that XRP could extend its rally to $18.22. On the flip side, if the rally to $18.22 does not come to fruition, XRP could still reach $13 as part of its Wave 5. To achieve these targets, XRP would need to experience a 3,426% increase to hit $18.22 and a 2,415% increase to reach $13.
Dark Defender clarified that these price targets should not be considered financial advice.
At the time of the report, XRP is trading at $0.521, up 0.75% over the past 24 hours and up 54.08% in the year-to-date period.
As usual, traders and investors are advised to conduct thorough research before making any investment decisions.