The price of XRP, the native coin of RippleNet, is currently under threat due to a pessimistic crypto market. XRP appears to be conforming to the market’s overall trend, as its current price is below the critical $0.50 level. According to a recent analysis by market analyst Tylie Eric, XRP holders do, in fact, have some hope. The analysis employs a technical signal to predict a potential price increase.
Understanding Elliott Wave Theory
Eric makes the case that the price fluctuations of XRP may be adhering to the Elliott Wave theory, which is a historical pattern. According to this theory, market trends follow a certain five-wave pattern, where each wave corresponds to a different stage of the price cycle.
This five-wave pattern has shown up on XRP’s weekly chart multiple times, according to Eric. Each occurrence of this pattern in the fifth and final wave resulted in a significant price increase, which is rather remarkable.
#XRP.
BEAT BY BEAT
I think XRP has ticked all the boxes and held all requirements to continue with wave 3 of wave 5,
Same way it did in 2017! pic.twitter.com/qqexAC7b1X— Tylie E (@TylieEric) June 20, 2024
Eric gives the example of early 2017, when XRP reached a high of $0.39—a startling 7,700% increase—after the fifth wave was completed. After this surge, there was a brief period of stability before there was another significant upsurge to $3.30.
A Potential Fifth Wave?
Using this historical precedent as a guide, Eric believes that the fifth wave structure that began to form after the price decrease in 2017 is about complete for XRP. He concluded that all four waves had crested during the past six years, paving the way for a fifth wave that might repeat 2017’s dramatic growth.
Eric’s bold forecast is rooted in his conviction that there will be a further substantial surge in prices during the fifth wave. According to his graphic, XRP is projected to have a remarkable gain of 7,630% and reach an impressive price objective of $36. This forecast aligns with other analysts’ projections, such the one from CryptoInsightUK, which said that XRP would hit $34 in September of last year.
Long Way Ahead
Eric must satisfy the Elliott Wave structure, a technical hypothesis still under debate among financial experts, if he is to make his prediction. Besides, the $36 price target looks too high. Remember that XRP’s market capitalisation must surpass that of all the other cryptocurrencies combined if it is to attain this value.
Featured image from Getty Images, chart from TradingView