A crypto strategist is warning that two large-cap altcoins could see deep corrective moves after massive rallies this month.
Crypto trader Credible tells his 473,800 followers on social media platform
Credible Practices Elliott Wave Theory, which states that an asset can correct or consolidate after completing a five-wave bull run. 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 maintain a crucial support level to maintain its bullish momentum.
“And that, ladies and gentlemen, is a clear five-wave, sub-wave and all impulsive move on XRP.
This:
1. confirms that our absolute bottom was at $0.49.
2. means that if we move below $1.05 (origin of the 5th sub-wave), it means that we are seeing a larger correction of the ongoing second wave before the next impulse (wave 3).
3. If we hold above $1.05, it would mean this fifth sub-wave is extending, which would mean we see more than $2 before any 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 versus Bitcoin (DOGE/BTC), the trader warns that the pair is hovering at levels where it will likely witness a downward move.
“The BTC pair is now at HTF (period high) resistance – really the only major obstacle between us and the new ATH (all-time high) on the BTC pair – but also the most likely place to expect a rejection on the entire HTF 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 down into the $80,000s – 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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