A crypto strategist is warning that two large-cap altcoins may witness deep corrective moves after massive rallies this month.

Crypto trader Credible tells his 473,800 followers on the social media platform X that payments-focused altcoin XRP looks primed for a pullback after completing a five-wave rally on the four-hour chart.

Credible practices Elliott Wave theory, which states that an asset may correct or consolidate after concluding a five-wave upside burst. During a five-wave rally, a bullish asset surges in waves one, three and five with waves two and four serving as corrective periods.

According to the trader, XRP needs to hold a crucial support level to maintain its bullish momentum.

“And that, ladies and gents, is a crystal clear five-wave impulsive move, subwaves and all on XRP.

This:

1. confirms our absolute bottom was in at $0.49.
2. means if we move below $1.05 (origin of the 5th subwave), then it means we are seeing a larger wave two correction underway before the next impulse (wave 3).
3. If we hold above $1.05, it would mean this fifth subwave is extending which would mean we will see $2+ before any major pullback.”

At time of writing, XRP is trading for $1.37, down over 7% on the day but up about 180% this month.

Looking at Dogecoin against Bitcoin (DOGE/BTC), the trader warns that the pair is hovering at levels where it will likely witness a downside move.

“The BTC pairing is now at HTF (high time frame) resistance – really the only major obstacle between us and new ATH (all-time high) on the BTC pairing – but also the most likely place to expect a rejection on the entire HTF historical chart if we are not ready for new highs yet…

In other words – if BTC doesn’t hold $94,000 and instead sees a correction back down into the $80,000s – then DOGE likely takes a big hit.”

At time of writing, DOGE/BTC is trading at 0.00000431 BTC worth $0.42.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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The XRP price recently surged to a three-year high of $1.6, marking a significant milestone in the cryptocurrency’s recent bullish rally. This remarkable price movement has garnered the attention of many analysts as investors continue to project the trajectory of the price.

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There are basically two ways the XRP price can go from here: either a continued move upwards or a notable correction. An in-between is a consolidation pattern.

CrediBULL Crypto shared his insights on the potential paths the altcoin might take next. Using the Elliott Wave Theory, he highlighted two scenarios that could shape XRP’s near-term future.

What’s The Next Path For XRP Price?

According to CrediBULL Crypto, XRP’s recent rally exhibits a textbook example of a five-wave impulsive move, complete with clearly identifiable subwaves. This pattern confirms that the cryptocurrency has likely reached its absolute bottom at the November low of $0.49, which is a strong foundation for its current upward trend.

The impulsive wave structure suggests that the crypto is at a pivotal juncture, and its future trajectory hinges on whether it sustains specific price levels.

The first possibility centers on XRP failing to maintain its position above $1.05, which is the origin of the fifth subwave in the current impulsive structure. Should this level break, it would confirm that the XRP price is in a larger Wave 2 correction.

According to the Elliot Waves Theory, Waves 2 and 4 are corrective waves, while Waves 1, 3, and 5 are the main bullish waves. before This correction, while bearish in the short term, would lay the groundwork for an even stronger Wave 3 rally in the future.

CrediBULL Crypto predicts a very different outcome if the XRP price manages to hold above the $1.05 level. Holding above the $1.05 level would indicate that the fifth subwave is extending. In this case, the analyst predicted that the XRP price will surpass the $2 mark before experiencing any substantial pullback.

The Road Ahead For XRP

XRP, which had lingered below the $1 threshold for the past three years, has now firmly established itself above this pivotal mark. The recent XRP price surge to $1.6 suggests that the cryptocurrency is in a stronger position to target the $2 milestone rather than retreat into a significant correction. This bullish sentiment is bolstered by speculation around SEC Chairman Gary Gensler’s anticipated resignation in January 2025.

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The XRP price climb to $1.6 reflects its growing strength in the market. Nonetheless, the next phase of its journey depends on key support and resistance levels. At the time of writing, the XRP price is trading at $1.46, having corrected by about 8.5% in the past 24 hours. However, the XRP price is still up by 175% in the past 30 days.

Featured image from Pexels, chart from TradingView

The layer-1 blockchain Cardano (ADA) is primed to continue its long-awaited price surge, according to a popular crypto analyst.

The digital asset trader Ali Martinez tells his 87,300 followers on the social media platform X that whales and “institutional players” have been buying into the Ethereum (ETH) competitor in anticipation of further price increases.

“The volume of large Cardano ADA transactions on the network has surpassed $22 billion per day. Those large transactions appear to be related to high accumulation levels. Indeed, whales holding from $1 million to over $10 million in ADA have increased their positions by more than 100% in the past month. 

The high buying pressure is starting to move prices, and from a technical perspective, Cardano seems to be mirroring its previous bullish cycle. If this pattern holds true, ADA could target $6!”

Martinez also notes that one “key area” of support that ADA needs to hold to maintain its bullish thesis is $0.80. At that price point, 48,000 addresses bought nearly 1.20 billion ADA.

ADA is trading at $1.06 at time of writing. The ninth-ranked crypto asset by market cap is up more than 24% in the past 24 hours, more than 48% in the past seven days and nearly 200% in the past month.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney