1. Introduction

1.1 Background and Purpose

In the current wave of digital finance, the cryptocurrency market has attracted widespread attention from global investors due to its unique decentralized characteristics, innovative financial models, and potential for high returns, becoming one of the most dynamic and promising sectors in the financial industry. Elixir (ELX), as an emerging force in the cryptocurrency field, is gradually making its mark. It is committed to providing a solid foundation for decentralized applications (dApps) and smart contracts, and its unique technical architecture and innovative use cases have secured its place in the competitive cryptocurrency market.

2. Overview of Elixir (ELX)

2.1 Elixir Project Introduction

The Elixir project was established in 2022 with the aim of addressing the long-standing liquidity challenges in the decentralized finance (DeFi) sector. In traditional financial markets, liquidity is mainly provided by centralized intermediaries, which use advanced trading strategies and algorithms to optimize exchange liquidity. However, entrusting funds to centralized institutions poses issues such as credit risk and regulatory risk. With the rise of DeFi, the market is exploring decentralized order book models to facilitate direct trading between traders and reduce reliance on centralized institutions. However, existing decentralized order book models still face challenges such as insufficient liquidity and high spreads, especially when dealing with long-tail crypto assets. Elixir emerged in this context with the goal of building a modular DPoS (Delegated Proof of Stake) liquidity network, allowing anyone to directly provide liquidity to the order book and inject liquidity vitality into long-tail crypto assets.

Since its establishment, Elixir has made a series of significant advancements. In March 2024, Elixir announced it secured $8 million in funding, led by Maelstrom Capital and Mysten Labs, with follow-on investments from institutions and individuals such as GSR and AmberGroup. With the addition of previously disclosed funding rounds, the total funding raised amounts to $17.6 million. These funds provide strong financial support for Elixir’s technological development, market expansion, and ecosystem building. As of now, nearly $200 million has been deposited into the Elixir protocol, with over 261 million transactions processed, demonstrating its growing appeal and activity in the market. Additionally, Elixir has partnered with over 30 leading DEXs, including Vertex, RabbitX, Bluefin, Apex, and Orderly, to enable liquidity provision to order book DEX trading pairs through its platform. Looking ahead, Elixir plans to integrate with a range of well-known DeFi protocols such as Pancakeswap, Paradex, and Synfutures, further expanding its ecosystem.

The core team members of Elixir have strong backgrounds, rich industry experience, and professional knowledge. Founder Philip Forte was a partner at BlockVenture, as well as an advisor to Solana, Moonbeam, Flow Network, and Magic, with keen insights and deep understanding of the development trends in the blockchain industry. Partner Cole Petersen is a DeFi author for Forbes and an investor in 3AC, Neuralink, and 20 other startups, with extensive connections and resources in the investment field. CTO Chris Gilbert was formerly the Chief Engineer at Tokensoft and IDEXX, with a solid foundation in technology research and development, able to lead the technical team in overcoming technical challenges and driving Elixir’s technological innovation and upgrades. COO Tim Wang led the crypto risk investment at Hudson River Trading, with over 10 years of traditional finance experience, including investment banking at J.P. Morgan, private equity at Lightyear Capital, and venture capital at Eniac Ventures, angel investing in over 30 crypto projects. His rich experience in traditional finance and crypto investments enables Elixir to better seize opportunities and address challenges in business operations and market expansion.

The team’s background has brought various positive impacts to the development of the Elixir project. In terms of technological innovation, the professional technical capabilities and rich experience of team members enable Elixir to develop unique and efficient liquidity management algorithms and network architectures. For example, Elixir’s network architecture is divided into off-chain and on-chain systems. Through the collaborative work of multiple components such as exchange data sources, data aggregators, validator networks, relay infrastructure, audit nodes, and controllers, the efficiency of data processing and the security of transaction verification are ensured. In terms of market expansion, the team members’ extensive connections and resources in the blockchain and investment fields help Elixir establish partnerships with many leading DEX and DeFi protocols, rapidly expanding its user base and market share. In terms of strategic decision-making, the team members’ deep understanding of industry trends and rich investment experience enable Elixir to formulate reasonable development strategies, seize market opportunities, and achieve sustainable development.

2.2 ELX Token Basic Information

The total supply of ELX tokens is 1,000,000,000, which fixed total supply to some extent affects its market scarcity and value expectations. Compared with some cryptocurrencies with unlimited supply, the limited supply of ELX gives it a certain advantage in the market supply and demand relationship, theoretically, with the increase in market demand, it has the potential to increase in value. Currently, there is no exact data on the circulating supply of ELX, but as the project develops and the ecosystem gradually improves, the circulation may gradually increase. Understanding the circulating supply is crucial for analyzing the market liquidity and price stability of ELX. If the circulation is too small, it may lead to inactive market trading and prices are prone to manipulation; while if the circulation is too large, it may exert downward pressure on prices.

2.3 ELX Token Usage

The ELX token has multiple important use cases, which have a profound impact on its market supply and demand, and price. ELX is used for node and validator staking to ensure network security. In Elixir’s Delegated Proof of Stake (DPoS) mechanism, validators participate in network validation and consensus processes by staking ELX tokens. Validators need to achieve 66% consensus to confirm the validity of data and process transactions, which requires them to hold a certain amount of ELX tokens to ensure their stake and responsibility in the network. This staking mechanism increases the demand for ELX tokens, as more nodes and validators participating in the network require staking more ELX. When the supply of stakable ELX tokens in the market is limited, investors may compete to buy ELX to meet staking demands, thereby driving up prices. The staking mechanism can also reduce the circulating supply of ELX in the market, further enhancing its scarcity and providing support for prices.

The ELX token is used as a community governance token. In the Elixir community, users holding ELX tokens can participate in community decision-making and governance processes, such as voting on the project’s development direction, rule-making, upgrade proposals, and more. This community governance mechanism gives ELX token holders certain rights and responsibilities, making them more attentive to the project’s development and value enhancement. In order to have a greater say in community governance, investors may increase their holdings of ELX tokens, thereby increasing market demand for ELX. The decision results of community governance will also affect market confidence and expectations for the Elixir project, thereby affecting the price of ELX. If the community can make decisions favorable to project development, such as launching new features, expanding partnerships, etc., market confidence in ELX will strengthen, and the price may rise; conversely, if there are disagreements or decisions unfavorable to project development within the community, the price may be negatively affected.

The use of ELX tokens gives it a unique value and status in the market, influencing the market supply and demand relationship, and having a significant impact on prices. As the Elixir project continues to develop and the ecosystem matures, the use of ELX tokens may further expand, leading to a more complex and diversified impact on market supply and demand and prices.

2.4 Market performance of Elixir (ELX) token (2025-3-11)

Login to the Gate.io trading platform to trade the ELX token:https://www.gate.io/trade/ELX_USDT

3. Market Analysis of Elixir (ELX)

3.1 Market Performance

From the historical price trend of ELX, since its launch, the price has shown significant fluctuations. In the early stage of the mainnet launch in August 2024, ELX price attracted market attention and investor enthusiasm, leading to a certain degree of increase. However, as the market heat gradually subsided and the overall cryptocurrency market environment changed, ELX price began to face downward pressure. From October to December 2024, due to increased market concerns about cryptocurrency regulatory policies and profit-taking by some investors, ELX price experienced a significant decline, falling to a historical low point. In 2025, with the gradual improvement of market sentiment and the continuous enhancement of the Elixir project ecosystem, ELX price started to stabilize and rise. After being listed on Gate.io exchange in March, it ushered in a new wave of uptrend.

In terms of trading volume, there is a certain correlation between the trading volume of ELX and its price trend. During the price increase phase, the trading volume often increases correspondingly, indicating high market participation and strong demand for ELX by investors. For example, after ELX was listed on Gate.io exchange in March 2025, its 24-hour trading volume quickly exceeded 10 million US dollars, reaching a recent high. However, during the price decline phase, the trading volume will shrink to a certain extent, reflecting a decrease in market trading activity and strong investor wait-and-see sentiment. For instance, during the price decline period of ELX in December 2024, its trading volume noticeably decreased compared to before.

There is a close relationship between price fluctuations and market cycles. In the bull market cycle of the cryptocurrency market, the overall market sentiment is optimistic, with a large influx of funds, and the ELX price often rises driven by the overall upward trend of the market. At this time, investors are full of confidence in the future development of the ELX project, willing to buy and hold ELX, pushing the price continuously higher. On the contrary, in a bear market cycle, market sentiment is pessimistic, with a large outflow of funds, and the ELX price will also be negatively affected and fall. During market adjustments, the ELX price may experience fluctuations, and trading volume will also be relatively unstable. Investors need to closely monitor market dynamics and seize investment opportunities.

3.2 Market Supply and Demand

From the supply side, the token release mechanism of ELX has a significant impact on its market supply. The total issuance of ELX is 1,000,000,000 tokens, and its release may gradually proceed according to the project’s development stage and preset rules. Some ELX tokens may be allocated to the project team, early investors, and partners, and the unlocking time and conditions of these tokens are usually clearly defined in the project’s whitepaper or relevant documents. For example, the project team may lock a certain percentage of tokens and gradually unlock them over the next few years to incentivize the team’s long-term commitment to the project’s development. Tokens held by early investors may also have a lock-up period to prevent them from selling a large amount in the short term, which could impact the market price. ELX is used for node and validator staking, and these tokens are locked during the staking period and do not enter the market circulation, thereby reducing the market supply. When nodes and validators need to exit the network or unstake, they need to unlock the tokens according to certain rules, which also affects the market supply.

In terms of market demand, ELX has a variety of demand drivers. As the core token of the Elixir ecosystem, ELX has a wide range of applications within the ecosystem. As mentioned earlier, it is used for staking by nodes and validators to ensure network security, which creates a certain demand for ELX among participants in the Elixir network. With the development of more decentralized applications (dApps) and smart contracts in the Elixir ecosystem, these applications may need to use ELX for transactions, payment of fees, or as an incentive mechanism, thereby increasing the demand for ELX. For example, in a DEX integrated with Elixir, users may need to pay ELX as a fee for transactions, prompting investors to purchase ELX to meet their trading needs. As a community governance token, users holding ELX can participate in community decision-making and governance processes. In order to have a greater voice in the community, investors are also motivated to buy and hold ELX. Market expectations for the prospects of the Elixir project will also affect the demand for ELX. If the market is confident in the development of the Elixir project and believes it has significant growth potential in the future, the demand for ELX will increase, driving up the price; conversely, if there are concerns about the project’s prospects in the market, demand may decrease, and prices will be suppressed.

3.3 Competitive Situation

In the cryptocurrency market, ELX faces competition from many similar projects. Compared with other projects aimed at solving decentralized financial liquidity issues, ELX has certain competitive advantages. Elixir’s unique technical architecture and innovative liquidity management mechanism make it stand out in the market. Elixir’s network architecture is divided into off-chain and on-chain systems, which ensure the efficiency of data processing and the security of transaction verification through the collaborative work of multiple components. Its adopted Delegated Proof of Stake (DPoS) mechanism enables validators to quickly reach consensus, improving the network’s operating efficiency. Elixir has partnered and integrated with more than 30 leading DEXs, possessing a wide cooperation network, which brings more application scenarios and user base for ELX. Through cooperation with these DEXs, ELX can circulate and be used on different trading platforms, increasing its market liquidity and visibility.

ELX also faces some competitive disadvantages. The cryptocurrency market is highly competitive, with new projects constantly emerging, and some competitors may have stronger technical capabilities, richer resources, or a broader user base. These competitors may introduce more innovative solutions to attract investors’ attention and funds, posing a threat to ELX’s market share. The uncertainty of regulatory policies towards cryptocurrencies also brings risks to ELX. If regulatory policies are unfavorable to the cryptocurrency industry, it may restrict ELX’s development and application, affecting its market performance.

Competition has a significant impact on the price of ELX. When more competitive projects appear in the market, investors may transfer funds from ELX to these projects, leading to a decrease in demand for ELX and a price drop. If competitors introduce more advanced liquidity management technology or more attractive use cases, investors may consider these projects to have better prospects, thereby reducing their investment in ELX. Conversely, when ELX can stand out in the competition, demonstrating unique advantages and development potential, investors’ confidence in it will increase, demand will rise, and prices may go up. For example, if Elixir can continuously expand partnerships, enhance technical performance, and meet the market’s demand for decentralized financial liquidity, then the price of ELX is expected to be supported and rise.

4. Factors Affecting the Price of Elixir (ELX)

4.1 Basic Factors of the Project

4.1.1 Technical Strength

The technical architecture of Elixir is unique, with its network architecture divided into two sets of off-chain and on-chain systems. In the off-chain system, the exchange data source is responsible for obtaining market data from various exchanges, holding read-only credentials of the exchanges, subscribing to update streams, and broadcasting the real-time data to the data aggregator after obtaining the data. The data aggregator combines the data from multiple sources into a deterministic framework, encrypts and signs it, and then broadcasts it to validators and audit nodes. The validator network operates through the Delegated Proof of Stake (DPoS) mechanism to ensure the decentralization and security of the system. End users delegate their status to validators, and validators with the most stakes receive the largest share of rewards and participate in consensus. The relay infrastructure uses secure enclave technology (will use Multi-Party Computation (MPC) infrastructure in the long term) to handle the keys with exchanges, ensuring that transactions are verified and signed. In the on-chain system, audit nodes receive data frameworks and order proposals from the data aggregator and relay nodes, verify the correctness of the proposals, and invoke the on-chain functions in the controller to handle malicious proposals. The controller is a smart contract responsible for managing stake pledging, rewards, and penalties, and checks 2/3 consensus of the active validator set and punishes malicious validators in case of disputes.

This unique technical architecture gives Elixir a significant advantage in handling transactions and ensuring network security. The efficient data processing capability can meet the needs of a large number of users conducting transactions simultaneously, ensuring the timeliness and smoothness of transactions. The robust security mechanisms enhance user trust in the Elixir network and reduce transaction risks. In the decentralized finance (DeFi) field, security and efficiency are key factors attracting users and investors. Elixir’s technical advantages enable it to attract more users and projects, thereby increasing demand for the ELX token. With more users and projects, the application scenarios of ELX in the ecosystem will become more extensive, further driving its price increase. If Elixir can continuously optimize its technology, improve performance and security, it will help maintain and enhance its competitiveness in the market, leading to long-term positive effects on the ELX price.

4.1.2 Team Background

The core team members of Elixir have rich industry experience and professional knowledge, providing strong support for the project’s development. Founder Philip Forte has served as a partner at BlockVenture and is also an advisor to Solana, Moonbeam, Flow Network, and Magic, with keen insights and deep understanding of the development trends in the blockchain industry. Partner Cole Petersen is a DeFi author for Forbes and an investor in 3AC, Neuralink, and 20 other startups, bringing extensive connections and resources in the investment field. CTO Chris Gilbert has previously worked as Chief Engineer at Tokensoft and IDEXX, with a strong technical background in research and development, capable of leading the technical team to overcome technical challenges and drive innovation and upgrades for Elixir. COO Tim Wang has led crypto risk investments at Hudson River Trading and has over 10 years of experience in traditional finance, including roles at J.P. Morgan’s investment banking, Lightyear Capital’s private equity, and Eniac Ventures’ venture capital, with angel investments in over 30 crypto projects.

The rich experience of team members plays an important role in all stages of the project. In the early planning stage of the project, team members, with a deep understanding of industry trends, can accurately grasp market demand, formulate reasonable project development directions, and strategic planning. In terms of technical research and development, the professional technical capabilities and rich experience of CTO Chris Gilbert enable Elixir to develop efficient and secure technical architecture and algorithms. In terms of market expansion and cooperation, the extensive network and resources of Philip Forte, Cole Petersen, and Tim Wang help Elixir establish cooperative relationships with many leading DEX and DeFi protocols, rapidly expanding its user base and market share. All of these have laid a solid foundation for the success of the Elixir project and strengthened investors’ confidence in the project. Investors generally prefer to invest in projects with a strong team background and rich experience because such teams are more likely to address various challenges encountered during the project’s development process and achieve the project’s long-term development goals. With the increased confidence of investors in the Elixir project, the demand for the ELX token will also correspondingly increase, thereby driving up the price of ELX.

4.1.3 Partners and Ecosystem Development

Elixir has made significant progress in cooperation with partners and ecosystem development. Currently, Elixir has collaborated with more than 30 leading DEXs such as Vertex, RabbitX, Bluefin, Apex, Orderly, etc., allowing users to provide liquidity to order book DEX trading pairs through Elixir. Elixir has provided over $1.25 billion in funding capacity to various order book exchanges to date, even supplying close to or over 50% of liquidity to popular decentralized order book exchanges like Bluefin, RabbitX, Orderly Network, Vertex. In the future, Elixir also plans to integrate with a series of well-known DeFi protocols such as Pancakeswap, Paradex, Synfutures to further expand its ecosystem.

Rich partnerships and active ecosystem development have a positive impact on the price of ELX. Collaborating with numerous leading DEX and DeFi protocols has brought more use cases and user base to ELX. Through integration with these partners, ELX can serve multiple purposes such as trading fees, staking tokens, incentive mechanisms, etc., increasing market demand for ELX. An active ecosystem can attract more developers and projects to join the Elixir ecosystem, forming a virtuous cycle. As the ecosystem continues to grow, the importance of ELX within the ecosystem will also increase, and its value is expected to further rise. A thriving ecosystem can enhance investors’ confidence in the Elixir project, attracting more investors to purchase ELX tokens, thereby driving up the price.

4.2 Market Factors

4.2.1 Macroeconomic Environment

Global economic conditions and monetary policies have a significant impact on the cryptocurrency market and the price of ELX. During periods of strong global economic growth and market confidence, investors tend to prefer assets with higher risks but greater return potential, such as cryptocurrencies. At this time, capital inflows into the cryptocurrency market may increase, and the price of ELX is also expected to be driven higher. When economic growth slows down and faces the risk of recession, investors’ risk preferences decrease, preferring to hold cash or traditional safe-haven assets such as gold, government bonds, etc. This may lead to capital outflows from the cryptocurrency market, causing negative impact on the price of ELX and a decline.

Changes in monetary policy can also affect the price of ELX. Adjustments in central bank interest rates, changes in money supply, and quantitative easing or tightening policies can all impact the market’s cost of funds and liquidity. When interest rates decrease and money supply increases, market liquidity is abundant, the cost of funds decreases, and investors are more willing to borrow funds for investment, which may drive up the cryptocurrency market, including ELX prices. Conversely, when interest rates rise and money supply decreases, market liquidity tightens, the cost of funds rises, investors may reduce their investments, and the cryptocurrency market may face downward pressure, suppressing ELX prices. After the global outbreak of the epidemic in 2020, many countries adopted loose monetary policies, and a large amount of funds flowed into the market. The cryptocurrency market also experienced a bull market, and ELX prices also benefited to some extent from this macroeconomic environment.

4.2.2 Overall Trend of the Cryptocurrency Market

Bitcoin, Ethereum, and other mainstream cryptocurrencies play an important role in the cryptocurrency market. Their trends often set an example and have a ripple effect on the entire market, including the price of ELX. As the leader in the cryptocurrency market, Bitcoin’s price fluctuations have a significant impact on market sentiment and investor confidence. When the price of Bitcoin rises, market sentiment usually becomes optimistic, investors’ overall confidence in the cryptocurrency market strengthens, which may attract more funds into the market, including the project where ELX is located. Investors may think that the entire cryptocurrency market is on an upward trend, and ELX also has great potential for an increase, leading to more purchases of ELX and driving its price up. Conversely, when the price of Bitcoin falls, market sentiment turns pessimistic, investors may sell off cryptocurrencies, and the price of ELX will also be dragged down.

As a pioneer of smart contracts, Ethereum’s ecosystem development and price trends will also have an impact on ELX. Many DeFi projects on Ethereum have certain connections or competitive relationships with Elixir in business. If the Ethereum ecosystem thrives, attracting more developers and users, it may drive the overall development of the DeFi market, bringing more cooperation opportunities and development space for Elixir, thereby positively impacting ELX prices. Conversely, if there are issues in the Ethereum ecosystem such as technical vulnerabilities, security incidents, etc., it may cause market concerns about the entire DeFi market, negatively impacting ELX prices.

4.2.3 Investor Sentiment and Market Expectations

Investor sentiment and market expectations are important factors affecting the price of ELX. Social media, cryptocurrency forums, and other channels are important platforms for investors to express their views and emotions. By monitoring and analyzing these channels, one can understand investors’ sentiment towards ELX. When discussions about ELX are active on social media and most investors hold an optimistic attitude, it indicates a positive market expectation for ELX. Investors may believe that the Elixir project has good development prospects, and the price of ELX is expected to rise, thereby increasing demand for ELX. This positive market expectation will create a self-reinforcing effect, attracting more investors to follow the trend and further driving up the price of ELX.

On the contrary, when there is a large amount of negative news about ELX on social media and investors’ sentiment is pessimistic, the market’s expectations for ELX will deteriorate. Investors may worry about the risks facing the Elixir project, such as technical issues, competitive pressures, regulatory risks, etc., leading to a reduction in purchases of ELX or even selling off their holdings of ELX. These negative market expectations can lead to a decrease in market demand, and the price of ELX may fall. Market expectations also affect investors’ long-term investment decisions. If investors are confident in the long-term development prospects of ELX, they may hold ELX for the long term, reducing its circulation in the market and providing support to the price. Conversely, if investors have poor long-term expectations for ELX, they may choose to sell quickly, increasing market supply and putting downward pressure on prices.

5. Method for Elixir (ELX) Price Prediction

5.1 Fundamental Analysis Methods

Fundamental analysis mainly evaluates the intrinsic value of ELX by studying fundamental factors of the Elixir project such as project progress, financial condition, market competitiveness, etc., in order to predict its price trend. Project progress is one of the key factors affecting the price of ELX. Breakthroughs and innovations in Elixir’s technical research and development, such as launching new liquidity management algorithms, optimizing network architecture to improve trading efficiency, etc., may attract more users and investors, thereby driving up the price of ELX. Achievements in market expansion, such as establishing partnerships with more decentralized applications (dApps) and smart contracts, expanding the application scenarios and user base of ELX, will also have a positive impact on the price. If Elixir can successfully cooperate with some well-known DeFi projects, allowing ELX to circulate and be used on more trading platforms, market demand for ELX is expected to increase, leading to a price increase.

Financial condition is also an important content of fundamental analysis. The reserves, sources of income, and profitability of the Elixir project will all affect investors’ confidence in the project and their expectations for the price of ELX. Adequate reserves can ensure the continuous research and development and operation of the project, stable sources of income and good profitability indicate the potential for sustainable development of the project. If Elixir can obtain stable income through transaction fees, providing liquidity services, etc., and achieve profitability, investors will consider the project to be of high value, willing to buy and hold ELX, thereby driving up the price.

Market competitiveness is one of the key factors determining the price of ELX. In the competitive cryptocurrency market, Elixir needs to compete with other similar projects for users and funds. Elixir’s technical advantages, unique application scenarios, good user experience, and strong brand influence can all help it stand out in the competition. If Elixir can demonstrate outstanding performance in liquidity management, providing more efficient and secure services than its competitors, it will attract more users and funds, thereby supporting the price of ELX. Paying attention to the development trends of the entire cryptocurrency industry, macroeconomic environment, and changes in policies and regulations can also help predict the price trend of ELX from a fundamental perspective.

5.2 Model Prediction Method

The model prediction method is a way to predict the price of ELX using mathematical models. Common models include time series models, neural network models, etc. Time series models are based on historical time series data of ELX prices, analyzing trends, seasonality, and cyclical features in the data, and establishing mathematical models to predict future prices. Autoregressive Integrated Moving Average (ARIMA) is a common time series model. The ARIMA model stabilizes historical price data through differencing and describes the data’s changes using a combination of autoregression (AR) and moving average (MA). The ARIMA model assumes that future price changes are related to past prices and error terms, determining model parameters by fitting historical data, and then predicting future prices. If ELX price data shows certain trends and seasonal features, the ARIMA model can predict future price trends by capturing these features. For example, if ELX prices have shown an annual increasing trend in the past few years, and there are significant seasonal fluctuations at a certain time each year, the ARIMA model can predict the corresponding changes in future prices based on these historical data features.

The neural network model is a computational model that simulates the structure and function of human brain neurons, which can automatically learn complex patterns and relationships in data for price prediction. In ELX price prediction, common neural network models include Multilayer Perceptron (MLP) and Long Short-Term Memory (LSTM). The Multilayer Perceptron is a feedforward neural network consisting of input layer, hidden layer, and output layer. The input layer receives historical data and relevant features of ELX prices, the hidden layer performs nonlinear transformations and feature extraction on the input data, and the output layer predicts future prices based on the output of the hidden layer. MLP adjusts the weights and biases in the network through a large amount of training data, enabling the model to accurately learn patterns and trends in price data. Long Short-Term Memory (LSTM) is a special type of recurrent neural network that can handle long-term dependencies in time series data. LSTM introduces gate mechanisms, including forget gate, input gate, and output gate, to control the flow and memory of information. In ELX price prediction, LSTM can better capture the dependencies between price data at different time steps, thereby improving prediction accuracy. For example, LSTM can learn the trend of ELX prices over the past few months or even years, as well as the long-term impact of market factors, project dynamics, etc., on prices, thus making more accurate predictions of future prices. These models each have their own advantages and disadvantages in ELX price prediction, and investors can choose the appropriate model or combine multiple models for prediction based on specific circumstances.

6. Elixir (ELX) price prediction results

6.1 Short-Term Price Forecast (1-2 Years)

In the short term (1-2 years), based on technical analysis, the price of ELX is expected to show a trend of oscillating upward. From the perspective of moving averages, if the ELX price can continue to stay above the 50-day moving average, and the 5-day moving average and 10-day moving average maintain a divergent upward trend, it will provide strong support for price increase. According to the Relative Strength Index (RSI) analysis, if the RSI indicator can stay above 50 and fluctuate within the range of 70 or below, it indicates that the market is in a relatively strong state, and the ELX price is expected to continue to rise. If the MACD indicator can maintain a golden cross state and the histogram continues to increase, it will further confirm the upward trend of the price. It is expected that in the next 1-2 years, the ELX price may fluctuate between 0.2-1 US dollars and is likely to break through the resistance level of 0.7 US dollars, reaching around 1 US dollar.

Fundamental analysis also supports the expectation of an increase in the price of ELX in the short term. The Elixir project is expected to make new progress in technical research and development and market expansion. In terms of technical research and development, Elixir may continue to optimize its liquidity management algorithm and network architecture to improve trading efficiency and security, attracting more users and projects to join. In terms of market expansion, Elixir may establish partnerships with more decentralized applications (dApps) and smart contracts to expand the application scenarios and user base of ELX. These positive project developments will increase market demand for ELX and drive up prices. However, there is also a certain risk of price fluctuations for ELX in the short term. The overall uncertainty in the cryptocurrency market and changes in policies and regulations may affect the price of ELX. If there is a significant adjustment in the cryptocurrency market, or if certain countries introduce policies and regulations unfavorable to cryptocurrencies, the price of ELX may be dragged down.

Conclusion

In terms of investment proportion, due to the high risk of the cryptocurrency market, investors should not invest all their funds in ELX. It is recommended to control the proportion of ELX investment in the total investment portfolio within 10% - 20% to diversify risks. At the same time, attention should be paid to the market dynamics and the development of the Elixir project, and investment strategies should be adjusted in a timely manner according to market changes. When major risk events occur in the market or significant changes in the fundamentals of the Elixir project take place, investors should decisively adjust the investment proportion or exit the investment to protect their asset security.