Korean Analyst who goes by the pseudonym XForceGlobal stated that XRP is set to reach $4, as, currently, it is in the 3rd wave of the Elliot wave analysis, which is the profitable phase. The Elliot wave analysis is a cyclic pattern that is based on the psychology of traders. It assumes that the market moves based on the investors’ psychology–from optimism, pessimism, fear, to greed. The impulsive waves move in the direction of the overall trend in 5 waves. It has 4 crests an 3 troughs.
The 3rd wave in the impulsive waves is the strongest and the longest wave where the price accelerate. As such, the analyst stated that the 3rd wave is going to be profitable under the assumption that the first and second waves of the pattern are labelled correctly.
Whales accumulate XRP amidst fears of another dump
It’s not just the pattern with its assumptions that predicts XRP hitting $4, but the whales’ behavior also complements this view.
As shown in the chart above, whales holding XRP tokens between 10 million and 100 million have been accumulating the token and not selling it even after the XRP reached above $3.5. And don’t forget the Ripple co-founder Chris Larsen, who dumped 50 million XRP into the market and crashed the prices, still has another stash of XRP. Despite being aware of another dump, if the whales are still accumulating XRP, it means that there is something more than what meets the eye.
$4.5 on the cards for XRP according to Fibonacci level
On the four-hour chart, XRP is fluctuating inside a bull flag. After hitting the upper trendline and ricocheting off of it, XRP is heading towards the lower trendline. As the zig-zag motion within the bull flag continues, the token will start to move towards the upper trendline once again, and it may break out and head towards $4.5 target as shown in the chart. The $4.5 level is derived by transposing the height of the flag pole at the point of breakout. This level coincides with the Fibonacci 1.618 level.
