A crypto strategist is warning that two large-cap altcoins may witness deep corrective moves after massive rallies this month.
Crypto trader Credible tells his 473,800 followers on the social media platform X that payments-focused altcoin XRP looks primed for a pullback after completing a five-wave rally on the four-hour chart.
Credible practices Elliott Wave theory, which states that an asset may correct or consolidate after concluding a five-wave upside burst. During a five-wave rally, a bullish asset surges in waves one, three and five with waves two and four serving as corrective periods.
According to the trader, XRP needs to hold a crucial support level to maintain its bullish momentum.
“And that, ladies and gents, is a crystal clear five-wave impulsive move, subwaves and all on XRP.
This:
1. confirms our absolute bottom was in at $0.49.
2. means if we move below $1.05 (origin of the 5th subwave), then it means we are seeing a larger wave two correction underway before the next impulse (wave 3).
3. If we hold above $1.05, it would mean this fifth subwave is extending which would mean we will see $2+ before any major pullback.”
At time of writing, XRP is trading for $1.37, down over 7% on the day but up about 180% this month.
Looking at Dogecoin against Bitcoin (DOGE/BTC), the trader warns that the pair is hovering at levels where it will likely witness a downside move.
“The BTC pairing is now at HTF (high time frame) resistance – really the only major obstacle between us and new ATH (all-time high) on the BTC pairing – but also the most likely place to expect a rejection on the entire HTF historical chart if we are not ready for new highs yet…
In other words – if BTC doesn’t hold $94,000 and instead sees a correction back down into the $80,000s – then DOGE likely takes a big hit.”
At time of writing, DOGE/BTC is trading at 0.00000431 BTC worth $0.42.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Follow us on X, Facebook and Telegram
Generated Image: Midjourney
Read the full article here
