A crypto strategist warns that two large-cap altcoins may witness deep corrective action after massive rallies this month.
Crypto trader Credible tells its 473,800 followers on social media platform
Credible practices Elliott Wave theory, which states that an asset can correct or consolidate after ending a five-wave upward burst. During a five-wave rally, a bullish asset rises in waves one, three and five, with waves two and four serving as correction periods.
According to the trader, XRP needs to hold a crucial support level to maintain its bullish momentum.
“And that, ladies and gentlemen, is a crystal clear impulsive move with five waves, sub waves and all on XRP.
This:
1. confirms that our absolute bottom was $0.49.
2. means that if we break below $1.05 (origin of the 5th sub-wave), it means we see a bigger wave two correction coming before the next impulse (wave 3).
3. Holding above $1.05 would mean this fifth subwave is expanding, which would mean we will see $2+ before a major pullback.”
At the time of writing, XRP is trading at $1.37, down more than 7% on the day but up about 180% this month.
Looking at Dogecoin vs Bitcoin (DOGE/BTC), the trader warns that the pair is hovering at levels where it is likely to witness a downward move.
“The BTC peg is now at HTF (high time frame) resistance – basically the only major obstacle between us and the new ATH (all-time high) on the BTC peg – but also the most likely place to see a rejection on the entire HTF expected historical chart if we are not yet ready for new highs…
In other words – if BTC doesn’t hold $94,000 and instead sees a correction back to $80,000 – then DOGE will likely take a big hit.”
At the time of writing, DOGE/BTC is trading at 0.00000431 BTC worth $0.42.
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