XRP Pullback Target Before Next Impulse Wave For BITSTAMP:XRPUSD By Iamasloth

To give some background for the rest of this post, I believe that the pump to $2 wave only wave 1 of 3 and not wave 3 as the retracement fell below the wave 1 high and XRP only pumped 10x while ETH (a coin that pumps less compared to XRP) pumped 50x. This means that we have just seen the 1st wave of the sub wave 3 of wave 3, confusing I know. Basically each Elliot wave has the whole cycle inside of the wave (waves 1-5 and ABC correction) and this can happen again within those sub waves.

This picture represents what I mean –> https://comparic.com/wp-content/uploads/…

Why it will pull back:

-XRP had a bearish divergence between the wave 3 and wave 5 (Black Elliott waves ) in which the price action created a higher high but RSI created a lower high

-XRP’s price action ​is currently hitting its head on a descending resistance (Red line)

-MACD has become bearish on the 4h chart

-Stoch RSI indicates XRP is temporarily topped out

-RSI is hitting it head on descending resistance (Purple line)

Pull back Target:

My pullback target is at the 0.382 retracement level of 93.5 cents (White line), I will be accumulating low leveraged longs at this point (1.5-2x). I believe that XRP will meet my target of 93.5 cents for a few reasons. The first and major reason is that XRP is in the most parabolic wave, the sub wave 3 of wave 3. When prices go parabolic, as they do in the 3rd impulse wave, its unlikely that price action will retrace to the 0.618 level which leaves the 0.5 and 0.382 level as potential targets. I believe that the 0.382 target will be met instead of the 0.5 target due to the large amount of price history at this level (Yellow boxes) with prices bouncing off this level 10-15 times in XRP’s history (depending on how you count it).

I believe that timewise, somewhere between now and the middle of September (Green lines) is when we will see XRP stop retracing and begin the next impulse wave up.

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