A popular cryptocurrency analyst has recently suggested that the price of XRP could, based on technical analysis, see an exponential price rise to the $22 mark amid a “violent” upward move.
According to the pseudonymous cryptocurrency analyst Charting Guy, who posted his XRP price analysis on the microblogging platform X (formerly known as Twitter), the price of XRP is set to next year see a “violent” third wave, a pattern historically associated with robust upward momentum.
To get his price target Charting Guy used Elliott Wave theory, a common tool for predicting future market fluctuations, to predict an impending surge for the price of XRP.
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.
The repetition of these patterns, theory suggests, allows the movements of asset prices to be predicted. The theory is said to have gained notoriety when Elliott himself predicted the stock market bottom in 1935 after a 13-month correction.
The analyst’s prediction comes at a time in which the price of XRP surged more than 27% over the last 30-day period to now trade above the $0.60 mark, while still being down around 2% year-to-date.
As reported, according to popular cryptocurrency analyst Ali Martinez, crypto whales have bought over 140 million XRP worth around $84 million in just a week as the price of the cryptocurrency rose significantly.
Featured image via Unsplash.
