The price of XRP, the native cryptocurrency of the XRP Ledger, has plunged around 8% over the past week. XRP is currently trading around $0.61, down from highs above $0.66 last week.
However, popular analyst Dark Defender remains bullish on XRP in the medium to long term. Dark Defender, who often analyzes XRP price action, stated that the corrective structure in the 4-hour timeframe appears to be complete.
He notes that XRP is currently in oversold territory, which could precede a move back to $0.6649 in the near term.
Dark Defender explains that XRP’s 5 wave Elliott Wave structure remains intact, as XRP closed above the key $0.6131 level on the daily chart. He is watching to see whether XRP holds above $0.6131 on the weekly close. If so, the larger bullish structure remains in play, with price targets at $0.87-$1.05.
Looking at technical indicators, XRP’s relative strength index (RSI) on the daily chart is currently around 40. The RSI is a momentum indicator that measures the recent speed and magnitude of price movements.
An RSI below 30 typically signals oversold conditions, while above 70 indicates overbought territory. So while the recent sell-off has picked up downward momentum, the RSI of 40 does not yet indicate oversold levels for XRP.
In summary, while XRP has seen significant selling pressure this week, key support levels remain intact. Analysts like Dark Defender remain optimistic about upside potential given oversold conditions. However, traders should watch critical support at $0.6131 in the days ahead. A decisive break below could invalidate the bullish technical setup.
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