The value of XRP, the native token of RippleNet, has been caught within the crosshairs of a bearish crypto market. Currently trading below the crucial $0.50 mark, XRP appears to be following the broader market trend. Nevertheless, a recent evaluation by market analyst Tylie Eric throws a glimmer of hope for XRP holders, predicting a possible price surge based on a technical indicator.
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Understanding Elliott Wave Theory
Eric argues that XRP’s price movements may be following a historical pattern often known as the Elliott Wave theory. This theory proposes that market trends unfold in a particular five-wave structure, with each wave representing a definite phase in the value cycle.
In keeping with Eric, XRP has exhibited this five-wave structure on multiple occasions prior to now on its weekly chart. Notably, every time this pattern materialized, the fifth and final wave culminated in a big price increase.
#XRP.
BEAT BY BEAT
I believe XRP has ticked all of the boxes and held all requirements to proceed with wave 3 of wave 5,
Same way it did in 2017! pic.twitter.com/qqexAC7b1X
— Tylie E (@TylieEric) June 20, 2024
Eric cites the instance of early 2017, where the completion of the fifth wave triggered a surge that propelled XRP to a high of $0.39, a staggering 7,700% increase. This upswing was followed by a transient consolidation period before one other decisive rally to $3.30.
A Potential Fifth Wave?
Constructing on this historical precedent, Eric believes XRP is nearing the conclusion of one other five-wave structure that began its formation after the 2017 price drop. His evaluation suggests that each one 4 preceding waves have unfolded over the past six years, paving the best way for a possible fifth wave that might mirror the dramatic rise witnessed in 2017.
XRP is currently trading at $0.48. Chart: TradingView
Eric’s audacious prediction hinges on the belief that the fifth wave will again translate to a considerable price increase. His chart projects a possible upsurge of a staggering 7,630%, which might propel XRP to a price goal of an exceptional $36. This prediction aligns with forecasts from other analysts like CryptoInsightUK, who projected an XRP price surge to $34 last September.
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Long Way Ahead
Eric’s prediction hinges on the completion of the Elliott Wave structure, a technical theory that continues to be a subject of debate amongst financial experts. Moreover, the $36 price goal appears highly ambitious. It’s necessary to do not forget that achieving such a price point would require XRP to surpass the present market capitalization of all cryptocurrencies combined.
Featured image from Getty Images, chart from TradingView