Popular cryptocurrency market analyst Dark Defender has recently revealed they remain optimistic on the price of the native token of the XRP Ledger, $XRP, holding onto a bold $5.58 price target which would mean a rally of over 1,000% from the cryptocurrency’s current level.

In a post on the microblogging platform X (formerly known as Twitter), the analyst used Elliot Wave theory to back his analysis, which has recently been revisited. Initially, the analyst highlighted a candlestick pattern that they suggested as a positive sign and was setting up XRP in line with its Fibonacci levels.

The analyst then used the Elliott Wave theory, a common tool for predicting future market fluctuations, to predict an impending surge for the price of XRP, suggesting it could hit $5.85.

The analyst noted in his latest update that XRP has “continued the horizontal move this week, staying between $0.52 and $0.46 Fibonacci levels.” Per his words, its primary resistance remains at the upper Fibonacci retracement level.

Dark Defender mentioned that around the $0.20 price level, a price movement toward the $0.89 to $1.86 is expected as part of the first wave in Elliot Wave theory, while a second wave could lead to $0.46 to $0.39.

In a third wave, the price of the cryptocurrency could surge to $1.88 to $5.85, concluding his XRP price prediction.

Ralph Nelson Elliott developed the Elliott Wave theory in the 1920s after he observed and identified “recurring, fractal wave patterns.” These fractal wave patterns are based on the psychology of the masses, with the Elliott Wave theory usually being interpreted based on five waves moving in the direction of a main market trend, which can be bullish or bearish, and by three corrective waves. 

The repetition of these patterns, theory suggests, allows the movements of asset prices to be predicted. The theory is said to have gained notoriety when Elliott himself predicted the stock market bottom in 1935 after a 13-month correction.

Dark Defender’s interpretation of the Elliott Wave theory, coupled with an analysis of XRP’s consistent weekly trends, suggests that the cryptocurrency could surge over 1,000% from its current $0.489 level.

Featured image via Pixabay.