The price of XRP, RippleNet’s native token, is caught in a bearish crypto market. Currently trading below the key $0.50 level, XRP appears to be following the broader market trend. However, a recent analysis by market analyst Tylie Eric offers a glimmer of hope for XRP holders, predicting a possible price increase based on a technical indicator.
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Understanding Elliott Wave Theory
Eric says that XRP’s price movement may follow a historical pattern known as the Elliott Wave theory. This theory suggests that market trends appear in a specific structure of five waves, each wave representing a different phase of the price cycle.
According to Eric, XRP has shown this five-wave structure many times in the past on its weekly chart. Notably, each time this pattern occurs, the fifth and final wave culminates in a significant price increase.
#XRP.
STRIKE WITH STRIKE
I think XRP has ticked all the boxes and holds all the requirements to continue wave 3 of wave 5,
Same way in 2017! pic.twitter.com/qqexAC7b1X— Tylie E (@TylieEric) June 20, 2024
Eric cites an example from early 2017, when the completion of the fifth wave triggered a surge that drove XRP to $0.39, a staggering 7,700% increase. This rise was followed by a brief period of consolidation before another decisive rally to $3.30.
A Possible Fifth Wave?
Building on this historical example, Eric believes that XRP is nearing the end of another five-wave structure that began to form after the 2017 price drop. His analysis suggests that all four previous waves occurred in the past six years, paving the way for a fifth wave that could reflect the dramatic increase seen in 2017.
Eric’s fearless prediction hinges on the idea that the fifth wave will once again translate into massive price increases. His chart projects an impressive 7,630% upside, which would propel XRP to a target price of $36. This prediction is in line with the predictions of other analysts such as CryptoInsightUK, who predicted an increase in the price of XRP to $34 last September.
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Far away
Eric’s prediction is based on the completion of the Elliott Wave structure, a technical theory that is still a matter of debate among financial experts. Furthermore, the price target of $36 seems too ambitious. It is important to remember that achieving that price point will require XRP to exceed the current market capitalization of all cryptocurrencies combined.
Featured image from Getty Images, chart from TradingView
