XRP/BTC Ready for Wave 3 (4hr Timeframe)

Although the outcome of the XRP v SEC case remains to be seen, XRP looks bullish as ever against BTC . Let’s take a look.

Elliot wave analysis: After an accumulation period from Feb ’21 to now… XRP has shown a solid 5 wave elliot structure, all part of a larger cycle wave 1. I have labeled the larger structure as light green so show the macro level. Wave 1 has been divided into 5 sub-waves labeled light-blue. Then macro wave 2 has been divided into a 3 sub-wave correction labeled red. Furthermore, the wave 2 correction fell within the limits of a Bull Flag . On April 26, 2021, there was a successful breakout from the Bull Flag , thus signaling the start of macro cycle wave 3. This wave will be sub-divided into a 5 wave structure as well, labeled yellow.
Wave 3 is usually 1.618 times the size of Wave 1. This gives us a target of .00004418 or in that range. Because of the breakout of the bull flag and the elliot wave analysis, I am going to go Long right now. I will take some profits at previous high and at the 1.618 fib level. After the Wave 4 ABC correction, I can strengthen my position before wave 5.

Fib. Analysis: Not only did we have an amazing 5 wave structure to the top of wave 1, the ABC correction fell right on the .618, a very bullish signal. Because of this bounce we can strengthen the argument for the 1.618 target to be reached.

Hidden bullish divergence: (Labeled orange) The price action from early April- April 21st formed a higher low, while the RSI formed a lower low. This was a hidden bullish divergence that was confirmed by the breakout of the bullflag. This to me is a great signal on many levels to go long.

Short Term: We always want to wait for the previous peak of Wave 1 to be broken through, to eliminate any double top action. This is why you can open a long now, after the correction wave 2, and take profits at previous high to eliminate any risk. Then you can take profits at 1.618 as well. Please note: The more trades you open on a single structure, the higher your risk percentage. I personally love to take profits at 1.618, then strengthen position at the end of correction wave 4. This eliminates the risk of double top action. This is where a lot of new investors get confused and panic sell.

Long term: If you hold out to see if this macro scale 5 wave structure plays out, you will realize amazing gains, especially if you open a long now.

This is my opinon. Not financial advice. The SEC case could very well put a damper into this situation. So lets see how this chart plays out.
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