Ripple-affiliated XRP token is exhibiting a noteworthy pattern that could indicate an imminent price movement.
According to Matthew Dixon, the CEO of fintech and analytics platform Evai, XRP's chart is forming a structure that, if aligned with previous Bitcoin trends, suggests a thrust higher might be on the horizon.
This analysis comes at a time when XRP's price shows a subtle uptick in the 24-hour range.
Deciphering Dixon's chart predictions
The 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 the psychology of investors.
According to this theory, a complete cycle consists of eight waves: five "impulse" waves that move with the overall trend are 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.
His interpretation suggests that XRP is nearing the end of its corrective "d" and "e" waves, postulating that a subsequent "thrust" — a sharp price increase — could follow.
Elliott Wave Theory can provide insights, but it is not infallible. Hence, it should be considered alongside other market indicators.
XRP's current market standing
XRP's price remains resilient, with a slight gain of 0.3% to $0.62 despite dropping against Bitcoin by 1.1%, according to CoinGecko data.
With a market capitalization standing strong at $33.7 billion, it is currently ranked sixth by market capitalization.
The token boasts a robust 24-hour trading volume of nearly $596.8 million.