Altcoin
Trader Says Explosive Move Is Around the Corner for DeFi Altcoins, Updates Outlook on XRP, Ethereum
A widely followed cryptocurrency strategist says a little-known decentralized finance altcoin appears poised for a big move higher.
Pseudonymous analyst Credible Crypto tells his 403,900 followers on social media platform X that he is bullish on the native asset of decentralized exchange and automated market maker Convex Finance (CVX).
The trader shares a chart that suggests CVX is poised to trigger a third wave of upside against the US dollar.
“I think an explosive move for CVX is just around the corner.
With the BTC pair approaching a major demand/support and the USD pair already bouncing off it, I think we are approaching a short window of outperformance on CVX.
The goal is to start with $4.70.”
Source: Credible Crypto/X
Credible practices Elliott Wave Theory, which states that a bullish asset tends to go through a five-wave pattern. According to the theory, wave three is the strongest and most impulsive wave of the rally.
Based on the chart, the trader seems to anticipate that CVX’s wave three rally will push the coin towards the $4.40 level before a wave four pullback and a wave five surge to around $7.
At the time of writing, CVX is trading at $2.98, up nearly 25% from the previous day.
Moving on to Exchange rate riskThe analyst predicts further downside for the altcoin before a major rally towards $1.
“For now, we are still in a range-bound environment, but if we were to get to $0.50 or below (green zone) again, I would be interested in a potential trade.”
Source: Credible Crypto/X
At the time of writing, XRP is worth $0.597.
As for Ethereum (ETH), Credible sees a scenario where the leading altcoin drops below $2,800. But note that the correction will only happen if Bitcoin (BTC) shows weakness.
“That’s still the one that makes the most sense to me. It would take a correction in Bitcoin for that to happen, so let’s see what we get.”
Source: Credible Crypto/X
At the time of writing, Ethereum is trading at $3,471, up more than 1% on the day.
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