The Ripple-affiliated XRP token is exhibiting a notable pattern that could indicate an imminent price movement.
The Ripple-affiliated XRP token is exhibiting a notable pattern that could indicate an imminent price movement.
According to Matthew Dixon, CEO of fintech and analytics platform Evai, the XRP chart is forming a structure that, if aligned with Bitcoin’s previous trends, suggests bullish momentum could be on the horizon.
This analysis comes at a time when XRP price is showing a subtle increase in the 24-hour range.
Deciphering the predictions of Dixon graphs
Elliott wave theory, a form of technical analysis that traders use to predict price movements by identifying recurring wave patterns, suggests that market cycles are driven by investors’ psychology.
According to this theory, a complete cycle consists of eight waves: five “impulse” waves that move with the general trend, followed by three “corrective” waves against it.
Dixon’s analysis points to the completion of an Elliott Wave pattern on the XRP chart, a technical forecasting method that anticipates market trends based on investor psychology manifested through waves.
Their interpretation suggests that XRP is nearing the end of its corrective waves “d” and “e,” positing that a subsequent “push” (a sharp price increase) could follow.
Elliott wave theory can provide insights, but it is not infallible. Therefore, it should be considered in conjunction with other market indicators.
Current XRP Market Position
XRP price remains resilient, with a slight gain of 0.3% to $0.62 despite falling against Bitcoin by 1.1%, according to CoinGecko. data.
With a solid market capitalization of $33.7 billion, it currently ranks sixth by market capitalization.
The token boasts a strong 24-hour trading volume of nearly $596.8 million.