In a recent video, renowned crypto analyst “CoinsKid” recently shared his in-depth analysis on XRP. Here’s a detailed breakdown of his insights.
CoinsKid began by acknowledging the strong performance of XRP, which has met his target of 82 cents. He explained this achievement through the lens of Elliott Wave Theory, suggesting that XRP has completed an impulsive five-wave move upwards. For those unfamiliar, Elliott Wave Theory is a method of technical analysis that looks for recurrent long-term price patterns related to persistent changes in investor sentiment and psychology. According to the theory, markets tend to move in a series of five waves in the direction of the main trend, followed by three corrective waves. The five-wave move forms the impulsive phase, with each wave having a specific characteristic and function, while the three-wave move forms the corrective phase.
This move comprised of an impulsive wave one, a corrective wave two, another impulsive wave three, a corrective wave four, and a final impulsive wave five, which reached the 82 cents target.
Drawing parallels with XRP’s performance in 2020, CoinsKid suggested that XRP could be repeating a similar pattern. In 2020, XRP experienced a five-wave move upwards, followed by an ABC correction, before breaking out again. He anticipates a similar ABC correction for XRP in the near future, which could bring the price back down to the neckline of the ascending triangle pattern that XRP has formed.
CoinsKid emphasized the importance of buying during these corrections, or “buying the blood,” as he puts it. He cautioned against buying during the big green candles, as these are often followed by significant pullbacks. Instead, he advised buying during the red candles, or during periods of fear and depression in the market. He stressed that these pullbacks are actually opportunities for investors to buy at lower prices before the next upward move.
Looking ahead, CoinsKid suggested that the next wave for XRP could be a wave three, which is typically the most powerful wave in an Elliott Wave sequence. If this is the case, buying during the anticipated ABC correction could offer even greater returns than buying during the low in January. He explained that wave three often results in a greater price appreciation, making it an ideal entry point for investors.
In terms of specific price targets, CoinsKid pointed out that XRP has hit the 161.8% Fibonacci extension level, which was calculated from the low of the Corona dump to the previous swing high. This level, he explained, was a minimal target for XRP’s upward move. He further explained that hitting this target is a positive sign, indicating that XRP has completed all the necessary steps to qualify for a huge impulsive move off its low.
If XRP does not break its current high anytime soon, CoinsKid anticipates a pullback to the neckline of the ascending triangle, which is around $0.5401. This, he suggested, could offer a good buying opportunity for those who missed the previous lows. He also mentioned that many people might not believe that XRP could pull back to this level due to factors like the SEC, but he reminded viewers that the market moves in waves and that these pullbacks are part of the natural market cycle.
In the longer term, CoinsKid suggested that if XRP can break the high from April 2021 and potentially the all-time high, it could reach $6 by the end of the year. However, he stressed that this is a theory and that the market’s movements are highly dependent on various factors, including the performance of other markets like the DXY (US Dollar Index). He noted that the DXY is currently oversold, so a bounce in the DXY could lead to a drawback for Bitcoin, crypto, and XRP.
In conclusion, CoinsKid advised his viewers to stay calm during the anticipated pullback and to see it as an opportunity rather than a threat. He reminded them not to buy during the big green candles but to wait for the red candles, as these often offer the best buying opportunities. He also encouraged his viewers to join his Discord channel, where he shares his trade setups and ideas. He ended the video by reiterating his belief that XRP could run to $6 by the end of the year if it breaks its resistance from 2021.