Crypto strategist warns that after huge rallies in this month, two altcoins with large market caps may experience deep corrections.
Credible, a crypto trader on social media platform X, tells 473.800 of his followers that the altcoin XRP, which is primarily focused on payments and has a four-hour chart with five waves completed on it looks ready for a drop.
According to the Elliott Wave Theory, an asset can correct itself or consolidate once it has completed a 5-wave upward surge. In a 5-wave rally, an asset that is bullish surges during waves 1, 3 and 5, with waves 2 and 4 serving as correction periods.
According to the trader XRP must hold a critical support level in order to keep its bullish momentum.
This:
1. Our absolute bottom is at $0.49. If we fall below $1.05, the origin of the fifth subwave, then we will see a bigger wave 2 correction before the next impulse. This would indicate that the fifth subwave has been extended, which means we’ll see at least $2 before we have a major correction .”
At the time of this writing, XRP was trading at $1.37. This is down 7% for the day, but has risen 180% in one month.
The trader says that when he looks at Dogecoin versus Bitcoin (DOGE/BTC), it is likely to see a downward move.
“The BTC pair is currently at HTF resistance (high-time frame). This is the major obstacle that stands between us and a new all-time high on the BTC Pairing. But it’s also where we can expect to see a rejection in the HTF historic chart, if we haven’t reached new highs.
“In other words, if BTC does not hold $94,000 but instead experiences a correction down to the $80,000s then DOGE is likely to take a huge hit.”
As of the time this article was written, DOGE/BTC trades at $0.42 or 0.00000431 BTC.
Do not miss a beat – Get email alerts sent directly to your mailbox Surf the ICD mix Follow us on @InvCryptoDaily X
Images Can Be Found on Pixabay Creative Commons & Midjourney
As new information becomes available, this post Dogecoin trading at most likely area to expect rejection may be updated.
