The price of XRP, RippleNet’s native token, has been caught in the crosshairs of a bearish cryptocurrency market. It is currently trading below the crucial $0.50 mark, XRP It appears to be following the broader market trend. However, recent analysis by market analyst Tylie Eric sheds a ray of hope for XRP holders, predicting a potential price rise based on a technical indicator.
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Understanding Elliott Wave Theory
Eric argues that XRP price movements may follow a historical pattern known as Elliot wave theory. This theory proposes that market trends unfold in a specific five-wave structure, with each wave representing a distinct phase in the price cycle.
According to Eric, XRP has shown this five-wave structure on multiple occasions in the past on the weekly chart. It is worth noting that each time this pattern is achieved, the fifth and final wave culminates in a significant price increase.
#XRP.
Win after win
I believe that XRP has met all the requirements and held all the requirements to continue into wave 3 of wave 5,
The same way it happened in 2017! pic.twitter.com/qqexAC7b1X-TylieEric June 20, 2024
Eric cites the example of early 2017, where the completion of the fifth wave pushed XRP to a high of $0.39, a staggering 7,700% increase. This rally was followed by a short period of consolidation before another decisive rise to $3.30.
Possible fifth wave?
Based on this historical precedent, Eric believes that XRP is close to completing another five-wave structure that began forming after the price decline in 2017. His analysis suggests that the previous four waves have unfolded over the past six years, paving the way for a potential fifth wave that could To reflect the significant increase witnessed in 2017.
Eric’s bold prediction is based on the assumption that the fifth wave will once again translate into a significant price increase. His chart forecasts a potential upside of a staggering 7,630%, which would push XRP to a massive $36 target price. This prediction is in line with those of other analysts such as CryptoInsightUK, who predicted the price of XRP would rise to $34 last September.
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Long way forward
Eric’s prediction hinges on the completion of the Elliott Wave structure, a technical theory that is still debated among financial experts. Furthermore, the $36 price target seems very ambitious. It is important to remember that achieving this price point would require XRP to exceed the current market cap of all cryptocurrencies combined.
Featured image from Getty Images, chart from TradingView