Elliott Wave Analysis
analysis can help us break down the entire rally from 2017 through 2021. The initial impulsive move, which ended at $1.39, marked the first wave of this cycle. From there, the wave II pullback ended at $0.017. The cryptocurrency then resumed higher in wave III towards $2.51, which was followed by the wave IV pullback towards $0.91.
Thanks to the theory, we know that if there is a momentum divergence between wave III and wave V, our count has a higher probability of success. The analysis can be subjective, however if all the EW rules are met, then we can be sure that our count is accurate.
1. Wave V can be equal in length to the first wave. In this case, wave V should have ended at $2.30 and developed a truncated wave 5, which we already surpassed.
2. Wave V’s target can also be the 61.8% of the first and third wave combined, measured against the low in wave IV. In this case, wave V should have ended at $2.42, but we already surpassed that target.
3. Wave V’s target can also be between 123.6% and 161.8% inverted extensions of the depth of wave IV. In this case, wave V can end anywhere between $2.89 and $3.50.