The RIPPLE "XRPUSD" above shows that the rally that started August 2018 from the major low at $0.24694 area took the shape of five-wave impulse structure labeled (1)-(5). According to theory, a three-wave correction in the opposite direction follows every impulsive move.
In Ripple's case, the corrective wave unfolded as a double-three correction labeled (W)-(X)-(Y) in wave 2. According to the theory, once a 5-3 wave cycle is completed, the market is expected to resumes in the direction of the impulsive move.
So the recent rally in May 2019 is wave (1), and the sharp decline that followed is wave (2), part of a five-wave impulse in primary wave 3 in a circle.
If this count is correct, and as long as the price is trading above the invalidation level at $0.28261, we can expect another rally in wave (3) of 3 in a circle which has the potential to take the price to the $1 area in the weeks ahead.
What is your thought about Ripple? Let me know in the comment.
Thanks for reading!
One of the common characteristics of a double zigzag is that wave (y) will most likely equal to wave (w), hence the blue zone 0.618 - 1 on the chart.
That level also lined up with 78.6% Fib of wave (1), a retracement level where wave (2) most time find support.
If anything could go wrong, that's why there is an invalidation level on the chart where I will get out!