XRPÂ could witness a leg down that would drop its price to $0.35 after observing an imminent price spike, according to a financial expert who identified the asset’s alignment with BTC.
Matthew Dixon, veteran investment trader and CEO of AI Crypto Ratings resource Evai, believes XRP’s future presents a bittersweet experience. Dixon noted this in a recent analysis of XRP’s charts, highlighting that XRP aligns with Bitcoin’s outlook.
The finance expert provided a daily XRP chart to pass across his message. Data from the chart reveals a 5-wave structure that XRP has continued to trade in since mid-July following the lawsuit victory.
XRP Completes Waves 1 to 3
Notably, XRP completed the first wave when it spiked 73% to $0.9380 on July 13 and then dipped from the price point. XRP collapsed by 11.95% following the 73% spike, dropping to a low of $0.6686. The asset formed Wave 1 amid this price action.
The completion of the second wave came up a few days after the first wave. Dixon’s chart suggests that XRP completed Wave 2 amid a recovery campaign that ensued after the drop to $0.6686. XRP eventually soared to $0.8489, completing the second wave.
Unfortunately, XRP gave in to bearish pressure after soaring to $0.8489. This pressure led to XRP retracing all the gains from July 13, dropping from $0.8489 on Jul. 20 to $0.4226 on Aug. 17. This marked a 50% descent in one month, leading to the completion of Wave 3.
Waves 4 and 5
After recovering from the $0.4226 low, XRP has continued to consolidate between $0.4590 and $0.5496, hedging against drops below $0.45 but unable to breach $0.55. Dixon believes XRP will soon complete Wave 4 amid an imminent price surge that would see it break above $0.55.
The analyst confirmed that this surge could go higher than his target. However, the more intriguing part of his forecast is the projection of a massive leg down for XRP following this price surge.
He called attention to a bearish divergence observed with XRP’s daily Relative Strength Index (RSI). This bearish divergence suggests that XRP faces weakening bullish momentum, and a price slump could be on the horizon. Â
Dixon thinks such a slump could result in an XRP decline to the $0.35 price level, marking the completion of Wave 5. “Nothing certain in TA but this is a high % probability IMO,” he said. At XRP’s current price of $0.4982, a drop to $0.35 would mark a 29.7% decline.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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