Falling Dollar Could Boost XRP, Analyst’ Take

Financial analyst Tylie Eric has shared a detailed analysis on X (formerly Twitter), examining the relationship between the U.S. Dollar Index (DXY) downturn and XRP price movements. Utilizing Elliott Wave Theory, Eric provides insights into potential future trends for both the DXY and XRP, drawing on historical patterns.

#XRP v #DXY.

THIS IS NOT A PRICE PREDICTION!

That being said, a falling DXY on wave 3 of both wave 3 and 4 has been great for XRP Price appreciation.

I couldn’t fit all the information but I added it in the first pic. pic.twitter.com/pETH5XsitQ

— Tylie E (@TylieEric) August 22, 2024

According to Eric, the DXY has completed a significant 5-wave structure, signaling a possible correction for the U.S. dollar. The analysis indicates that the DXY could now be in Wave (5) of a larger corrective pattern, which might lead to further weakening of the dollar as it approaches key support levels.

Eric’s charts emphasize the DXY’s movements through critical Elliott Wave structures, particularly highlighting the importance of Wave (3) corrections within both larger and smaller wave cycles.

His analysis indicates that these corrective phases have historically coincided with notable XRP price increases. Specifically, the DXY’s current progression through a Wave (3) phase appears to have a strong correlation with XRP’s past upward movements.

The green areas on the charts represent periods where the DXY’s wave patterns align closely with XRP’s price appreciation. Notably, the charts suggest a potential XRP price increase between 2024 and 2026, coinciding with the DXY’s ongoing corrective Wave (3) phase.

However, Eric cautions traders that his analysis is not a direct price prediction for XRP, suggesting investors should carry out due diligence before making any trading decisions.

Meanwhile, other market observers have pointed out that as DXY’s position weakens, any asset paired with USD tends to rise; not just XRP alone. At press time, XRP/USD trades at $0.598, with XRP up by over 15% in the last year.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

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