A crypto strategist who accurately called the Bitcoin (BTC) and Solana (SOL) correction this year says that the payments altcoin XRP is next in line to witness big price drops.
Pseudonymous analyst Bluntz tells his 318,000 followers on the social media platform X that the XRP against Bitcoin (XRP/BTC) pair is flashing a bearish divergence on the weekly chart.
Traders keep a close eye on coins flashing a bearish divergence as the signal suggests the token is losing bullish momentum and may be ready to enter a downtrend.
Bluntz also notes that XRP appears to be in the midst of an ABC correction against the US dollar.
“Looks increasingly like that was a complacency shoulder B wave on XRP in my opinion.
If BTC and SOL taught me anything the last month, do not fade the weekly bear divs.”
Bluntz practices the Elliott Wave theory, which states that an asset tends to go through an ABC pullback after completing a five-wave rally. Based on the trader’s chart, he seems to predict that XRP will fall to the $1 area to complete the ABC correction.
At time of writing, XRP is worth $2.46.
In January, when BTC was trading above $100,000, Bluntz said that Bitcoin appears to have completed a five-wave rally and that a market top may be in. He later updated his outlook and said that Bitcoin was flashing a bearish divergence on the monthly timeframe.
Last month, he told his followers that SOL looked weak after losing the $220 level while showing a bearish divergence on the two-week chart.
At time of writing, BTC is trading for $87,421 and SOL is worth $144.78.
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Generated Image: Midjourney
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