Cryptocurrency enthusiasts are closely watching the movements of two popular altcoins as a crypto strategist issues a warning about potential deep corrective moves following significant rallies this month.
One of the altcoins under scrutiny is XRP, a payments-focused digital asset that has seen a five-wave rally on the four-hour chart. The crypto trader known as Credible, who practices Elliott Wave theory, believes that XRP is on the verge of a pullback as it completes this bullish surge. According to Elliott Wave theory, assets often correct or consolidate after completing a five-wave upside burst, with waves two and four acting as corrective periods.
Credible emphasizes the importance of XRP maintaining a crucial support level to sustain its bullish momentum. The trader points out that if XRP falls below $1.05, it could signal a larger wave two correction before the next upward impulse. However, if XRP manages to stay above $1.05, it may indicate an extension of the fifth subwave, potentially leading to a price target of $2 or higher before a major pullback.
As of the time of writing, XRP is trading at $1.37, showing a 7% decline for the day but a remarkable 180% increase for the month.
Another altcoin drawing attention is Dogecoin, particularly in its pairing against Bitcoin (DOGE/BTC). Credible warns that the DOGE/BTC pair is currently at high time frame resistance levels, posing a potential obstacle to reaching new all-time highs. The trader cautions that if Bitcoin fails to hold above $94,000 and experiences a correction back into the $80,000 range, Dogecoin could suffer a significant drop in value.
Currently, DOGE/BTC is trading at 0.00000431 BTC, equivalent to $0.42.
In conclusion, the crypto market is always full of surprises, and traders and investors must stay vigilant and informed about potential corrective moves in these popular altcoins. By closely monitoring support levels and resistance points, market participants can better navigate the volatile landscape of cryptocurrency trading.
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