In a recent tweet, Matthew Dixon, CEO of Evai, foresaw a big decline in the price of XRP.
He predicts that the price of the cryptocurrency will initially drop to as low as $0.34 before seeing a strong recovery and maybe topping $0.6.
On May 23, Dixon, who frequently employs Elliot Wave Theory to assess market movements, sent a message that alluded to a chance for high risk-reward ratios in the wake of the anticipated price change.
For those who are unfamiliar, traders utilise the Elliot Wave Theory, which was created by Ralph Nelson Elliott in the 1930s, to analyse market cycles and predict future price patterns. According to the idea, prices fluctuate in cycles of five “impulse” waves and three “corrective” waves.
This structure was mentioned in Dixon’s tweet, which suggested that the last impulse wave of XRP, or the “X wave,” would be a slight upward movement, followed by a “Y wave” or corrective wave, to the downside. The token is anticipated to increase after that, though.
As of this writing, according to CoinGecko statistics, the price of XRP is $0.461188, up 0.7% from the previous day and 9.3% from the previous week.
To achieve its record high of $3.4, which was reached more than five years ago in January 2018, XRP still has a ways to go. Investors should prepare for the coin’s value to drop first, according to Dixon’s forecasts, before seeing a significant increase that pushes it over $0.6.
If Dixon’s thesis is accurate, this might result in significant returns for investors who can endure the first losses.
