Cryptocurrency investors have decreased demand for XRP bids over the past few hours, sending prices to fresh post-crash lows of 1.09$.
But selling could continue to accelerate further should prices remain below the 1.30$ handle.
XRP Upside a 5-Wave Move?
With prices having failed to sustain breaks below the crash low of 0.93$ and the 50% Fibonacci retracement of the 5-wave 0.93-1.29 impulse, the overall risk sentiment could remain positive going forward.
However, a setback can be expected lower than the 61.80% and even the 78.6% Fibonacci retracement levels.
This should lineup with the main scenario of primary wave ② having completed its course in a double-three fashion.
To insure against weakness, traders can place a safety net below the crash low. Contrary, should the impulse move prevail, the first strong resistance buyers could meet lays by the 1.618% Fibonacci expansion of waves 1-2, at $1.80.
Another Leg Down Can Be Expected
Although the alternative scenario does not suggest radical changes, it is a short-term failure that increase probabilities of moving into lower territories.
While the main scenario is bullish, the alternative points at an incomplete 5-wave impulse in wave C of (Y), thus, bearish in the short-term. And that impulse just finished correcting in minute wave four, heading to its last and final leg to wave (Y).
Wave C of (Y) could end anywhere between the previous low of 0.93$ and 0.73$ as the latter is the 100% Fibonacci expansion of waves (W)-(X). However, should bears become stronger and break the first barrier, they will also have to get past the base-channel lower trendline, making firm dynamic support.
Long-term Potential Looking Bright
Rejection at any of the said levels would offer a better bargain for bulls, short and long term.
Short-term traders can look at drawing their Fibonaccis once the first impulse is complete. On the other hand, long-term holders have a greaterupside potential.
Both scenarios see wave 1 only as the start of a higher degree wave impulse, intermediate wave (1), followed by a full 5-wave move in primary wave ③,which continues in ⑤.
About the Author
Stavros is an licensed Forex professional, currently heading the investment research team at a reputable broker. He has demonstrated history in proprietary trading, Elliott Wave analysis and educational content writing. He is seen writing in the best sites for traders.
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