A cryptocurrency analyst has recently issued a stark warning for XRP investors, predicting a potential price crash over the next few months to a potential low of $0.07, down from its current $0.4 level.
According to cryptocurrency analyst Ripple Effect, the price of XRP is seeing a breakdown from a multi-year triangle pattern that suggests it’s set for a decisive downward move in the near future.
The analyst uses Elliot Wave Theory a common tool for predicting future market fluctuations.
Ralph Nelson Elliott developed the Elliott Wave theory in the 1920s after he observed and identified “recurring, fractal wave patterns.” These fractal wave patterns are based on the psychology of the masses, with the Elliott Wave theory usually being interpreted based on five waves moving in the direction of a main market trend, which can be bullish or bearish, and by three corrective waves.
Elliott Wave Theory posits that markets move in five-wave cycles, with three corrective waves following the initial five impulsive waves. XRP, the analyst argues, is currently in the final corrective wave (Wave C) after its peak in early 2018.
Within Wave C, XRP is traversing sub-waves, with the current wave (wave 3) typically associated with significant price movements.
No one is talking about this MASSIVE $XRP triangle breakdown. A weekly close below $0.42 is extremely bearish. $XRP has been in a primary WAVE 2 correction (A-B-C pattern) since the 2018 peak. Currently, WAVE C is unfolding, and we are likely in WAVE 3 or 5. A sharp sell-off is… pic.twitter.com/PzoIEtCfwB
— The_Ripple_Effect (@Ripple_Effect11) July 8, 2024
The analyst outlined several potential price targets, with the most concerning being a drop to $0.07-$0.08. This translates to a staggering decline of over 80% from XRP’s current price level.
The prediction comes shortly after another cryptocurrency analyst suggested the cryptocurrency could soon see an explosive upward move after identifying similar price patterns throughout XRP’s history, pointing to symmetrical triangle breakouts.
In a post shared on the microblogging platform X (formerly known as Twitter) with his over 40,000 followers, analyst Javon Marks suggested that “something massive can be truly nearing” after pointing to the “way prices are coiling/shaping up combined with where they’ve come from (historical data) and high volume plus an already confirmed Hidden Bullish Divergence.”
Featured image via Unsplash.
