The ABC Zig-Zag Correction is playing out as expected, and whilst it is finalising it represents a good time to think about where we are headed next -
Where are we at now -
What is next -
At present I am bullish on XRP, the charts are adhering quite well to Elliot Wave Theory and the RSI on the Daily is suggesting that most of the downward action has been had which lines up with correction we are having.
To invalidate this Elliot Wave 2 Correction price would need to fall below $0.62, which I don’t think there is enough juice in the RSI to do it, not before bouncing anyways.
Where are we at now -
- Price action is fairly weak at $0.92 and we are now in wave 4/5 of a C correction, it seems logical that we are headed down a little bit more.
- A possible bearish pennant could be forming giving additional confluence to further downward price action.
- Wave 5 isn’t usually as steep as Wave 3 so my price target to end this ABC correction is between $0.86 and $0.80 - there is support at $0.82.
What is next -
- After the completion of this Zig-Zag correction, I am bullish on XRP. Presently we are in a Wave 2 correction which means wave 3 is expected to come next.
- There is a lot of China FUD in the news which is bullish for me. News is almost always bearish at market bottoms.
- The RSI on the daily is nearing 30, which historically has a strong bounce zone.
- Based on a Trend-Based Fib Extension, we are looking at wave 3 going to around $2.80.
At present I am bullish on XRP, the charts are adhering quite well to Elliot Wave Theory and the RSI on the Daily is suggesting that most of the downward action has been had which lines up with correction we are having.
To invalidate this Elliot Wave 2 Correction price would need to fall below $0.62, which I don’t think there is enough juice in the RSI to do it, not before bouncing anyways.
Comment:
The pennant represents wave 4 of the C correction so we are now in Wave 5 I believe which is the final leg of this correction.
Comment:
Skipped buying in at $0.93. Instead I used 75% funds allocation and bought in at $0.862. Which I think is a great buy in price. I purchased in here because Bitcoin was fairly close to hitting $40K and was anticipating a bounce. Which it actually did. I have left 25% funds allocation for a possible lower price as I did have a price target of $0.80 which is possible as bitcoin is targeting $38k. I do think the bottom is nearing close.
Comment:
I get the feeling that we are at the bottom and a reversal is imminent. Both BTC and XPR have technically completed their ABC corrections. In addition to this, the RSI for both coins on the 4 hourly and Daily are in a bounce zone. I am quite unsure if we will see an $0.80 XRP.
Comment:
Trade closed: target reached:
Didn't quite hit the $0.80 cent mark but did reach my first two two targets of $0.93 and $0.86. Whilst it's too early to tell just yet, we might be starting the next wave upward.
Trade closed: target reached
