XRP appears set for an unprecedented rally as bullish sentiments continue to emerge for the crypto asset. Per a recent tweet, renowned crypto and XRP enthusiast Egrag Crypto remains highly bullish on XRP following a new analysis.
Egrag’s latest analysis was based on a pattern termed “Elliott Wave ” and it projected XRP to a price high of $27.
#XRP Aiming to $27 – Wave 1 inside Wave 3 🌊:
— EGRAG CRYPTO (@egragcrypto) October 16, 2023
Diving into the Elliott Wave Theory as we explore the potential for #XRP to reach $27! 🚀In Elliott Wave Theory, usually Wave 3 is a game-changer.
Key Facts about Wave 3 characteristics:
A) Wave 3, emerges as the trend's dominant… pic.twitter.com/CjMxZFNwXt
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Elliott Wave – A Brief Overview
For context, Elliott Wave theory is one of the most accepted and widely adopted styles of presenting technical analysis in the crypto sphere. Crypto experts use the waves to predict coin prices.
Egrag’s newest analysis is based on three Elliott Wave patterns: a bigger one and two other smaller ones. Notably, each of these patterns accommodates five waves. The larger pattern appeared in 2013 and has remained relevant since then. Egrag noted that XRP is trading presently within the third wave of the larger pattern.
Intriguingly, XRP has traded beyond the first smaller pattern that appeared in 2013 and disappeared in 2017. The digital asset completed the fifth wave of the first smaller pattern in December 2017. However, XRP is still stuck in the third wave of the second smaller circle that came up in March 2020.
In a nutshell, XRP is trapped in the third wave of both the larger pattern and one of the smaller patterns. Egrag categorized the entrapment within Wave 3 as having a massive significance on the XRP price movement.
Implications Of XRP Being Stucked In Wave 3 Of Two Distinct Patterns
Per Egrag, third waves have been known to dominate other waves in any of the three described Elliott Wave patterns. He added that aside from being the predominant wave, it is also renowned for influencing market and price outlooks.
Describing Wave 3’s influence on price movement, the crypto expert noted that it always begins with a subtle decline in asset prices, after which the bull sets in to catapult cryptocurrency prices. These market declines and bullish periods are driven by the existing positive and negative market sentiments during each of the phases.
Most importantly, Egrag noted that Wave 3 targets have always been above Wave 1 by a 1.618 ratio. This factor points to XRP’s significant tendency to record impressive price highs as it remains trapped in Wave 3.
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XRP’s Journey To $27
It is worth noting that the third wave of the larger pattern began in March 2020, while that of the smaller pattern started in June 2022. Egrag remarked that he expects XRP to attain a price level of $6.57 by the time it finishes Wave 3 of the smaller pattern.
The price target above rests at the Fibonacci level of 1.618. Egrag added that a new round of correction that would mark the onset of Wave 4 will be imminent once XRP hits the $6.57 price mark.
The projected $27 price high will only play out on the completion of Wave 5 of the miniature cycle. Note that amid the completion of the five waves in the smaller pattern, XRP would remain stuck in Wave 3 of the immense pattern.
At the time of writing, XRP is worth approximately $0.52, implying that a potential ascent to $6.57 and $27 would indicate increments of 1,163.5% and 5,092%, respectively.
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