Trader Warns of Potential XRP Correction, Says Dogecoin Trading at Most Likely Area To Expect Rejection

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…