A trader by the name of Harry has shared his Elliott Wave analysis for Ripple (XRP), predicting a bullish wave 3 in the coming months. In a tweet, the trader warned that traders should take note of the current situation on XRP’s charts, as swing traders might potentially be unable to afford the cryptocurrency as its price rises.
According to Harry, XRP’s price has recently completed its bearish wave 2 correction. The trader also noted that XRP’s price has been printing a fulcrum/double bottom pattern since June of last year in search of a confirmed wave 2 completion.
Harry went on to say that XRP’s price has closed above the last 30, 60, and 90 day closes, indicating positive momentum for the cryptocurrency. Furthermore, the trader believes that hedge funds may start looking at buying XRP at this point. The start of wave 3 and the increasing correlation between exchange/market maker bias and retail holders are also contributing to the bullish outlook for XRP, according to Harry.
What is Elliott Wave Analysis?
Elliott Wave analysis is a technical analysis method that uses wave patterns to predict future market movements. The theory is based on the idea that market movements follow a natural pattern of waves, with five waves moving in the direction of the trend (impulse waves) followed by three waves in the opposite direction (corrective waves).
Elliott Wave analysis is often used by traders to identify potential price targets and to determine the timing of market movements. It is based on the principle that market movements are driven by the psychology of traders, who tend to act in a predictable manner based on their emotions.
Conclusion
Trader Harry’s Elliott Wave analysis for Ripple (XRP) predicts a bullish wave 3 in the coming months. XRP’s price has completed its bearish wave 2 correction and is now in a fulcrum/double bottom pattern, potentially making it unaffordable for swing traders. The positive momentum for XRP and the increasing correlation between exchange/market maker bias and retail holders are contributing to the bullish outlook for the cryptocurrency. As with all technical analysis methods, however, it is important to exercise caution and to consider multiple factors when making investment decisions.
