Evai CEO Matthew Dixon has predicted a significant downturn for the price of XRP in a recent tweet.
He expects the cryptocurrency to first tumble to as low as $0.34, before making a dramatic rebound, potentially surpassing $0.6.
Dixon, who often uses Elliot Wave Theory to analyze market trends, published the message on May 23rd, hinting at an opportunity for high risk-reward ratios following the predicted price fluctuation.
For the uninitiated, Elliot Wave Theory, originally developed by Ralph Nelson Elliott in the 1930s, is a method used by traders to analyze market cycles and forecast future price trends. The theory suggests that prices move in waves, typically consisting of five "impulse" waves followed by three "corrective" waves.
Dixon's tweet referred to this structure, implying that the "X wave" — the last impulse wave — of XRP would be a minor upward move, followed by a "Y wave" — a corrective wave — to the downside. However, the token is expected to rally after that.At the time of writing, CoinGecko data shows that XRP's current price is $0.461188, up 0.7% on the day and 9.3% over the past week.
XRP still has a long way to go to reach its all-time high of $3.4, a record set over five years ago in January 2018. According to Dixon's predictions, investors should anticipate an initial fall in the coin's value, before a sizeable spike takes it beyond the $0.6 mark.
If Dixon's analysis holds, this could mean considerable returns for investors able to weather the storm of initial losses.
