The daily Relative Strength Index (RSI) for XRP has also slipped into the oversold territory, indicating that the asset is undervalued.

Analyst Dark Defender asserts that XRP is now ready to commence its next phase, with a short-term target between $0.89 and $1.42, and an ultimate price of $3.47 by year’s end.

Dark Defender has set three target destinations for XRP using a wave model. In his previous analysis, he revealed that the recent XRP rebound marked Wave 1 and noted that XRP would face a correction, driving its price down to between $0.38 and $0.42, which he referred to as Wave 2.

The latest XRP correction brought the asset down to a 7-week low of $0.412, touching the correction target and confirming the completion of Wave 2. According to Dark Defender, the next target for XRP is Wave 3, which should take XRP into a range between $0.89 and $1.42.

XRP RSI Slips into Bullish Territory

In addition, the analyst drew 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 revealed that XRP’s daily RSI is oversold, meaning XRP might be undervalued or too cheap.

Moreover, he emphasized that XRP’s weekly RSI is nearing support. An RSI nearing support suggests that the asset is touching oversold levels. This also indicates a potential price rebound, as historically, buyers have entered at such levels to prevent further decline.

If XRP experiences a price rebound, Dark Defender asserts it will initiate Wave 3, leading to a short-term price between $0.89 and $1.42. The analyst pointed out that Wave 3 could start this summer (late June to late September), but this is uncertain. However, he revealed in his analysis last month that the short-term target of $1.42 will act as a precursor to “Big Wave 3,” which should lead to the ultimate target price of $3.47 by December 2023.