XRP 100% upward potential, BUT FIRST to finish leg C down
Applying Elliot Wave Theory ( "EWT" to the Ripple (XRP) graph clearly shows us that we are currently forming the C-correction leg, after which a new upward impulse wave should be very likely to start .
--> We clearly see the movement of the five subwaves in the upward impulse wave, followed by the ABC correction, as prescribed by Elliot Wave Theory.
--> The C leg has been drawn for the first part, but can be expected to go lower (according to the wave theory principles), before a new uptrend can start, which is also confirmed by MACD and RSI indicators (see further).
Applying the Elliot Wave Theory rules:
EW Theory can be easily explained and applied looking at this graph. We can see the three rules hold true:
--> Rule ("I") Elliot Wave Theory rule 1: Wave 2 cannot exceed wave 1 in retracement (wave two can not correct to a lower price than wave 1’s starting point) —> OK
--> Rule ("II") EW Theory rule 2: Wave 3 can never be the shortest : a tricky one but subwave 3 is still longer than subwave 1 —> OK
--> Rule ("III") EW theory rule 3: wave 4 can never overlap wave 1 —> OK
Some guidelines are also highlighted and confirmed:
--> (i) Guideline: if wave 2 is steep, then wave 4 is relatively flat : Wave 2 shows a retracement from 0,000052 to 0,00003564 or 46% correction, which is quite steep so 4 will be relatively flat and is actually around 20% —> OK
--> (ii) Guideline: After a "5-wave" impulse advance, corrections ( abc ) usually end in the area of prior Wave 4 low —> we use this as a FIRST ESTIMATE to where the price will retrace BEFORE taking of for the next 5-legged impulse wave upward!
Additional information on the graph confirms our viewpoint:
--> The MACD is still in decline with the red line over the blue + will reach a bullish cross somewhere around end of leg C.
--> RSI is also in a downward trend for the moment.
Conclusion:
--> It is best to sit back some more while leg C is developing, and jump back into XRP when indicators such as MACD and the start of a new first wave leg confirm a bullish reversal (note: price potential at this time to All time high is around 100%, but will be even more from the C leg bottom).
PS: this article is by no means intended as formal investment advice, please do your own due diligence and best of luck!
