Trader Says Explosive Move Around the Corner for DeFi Altcoin, Updates Outlook on XRP and Ethereum

July 24, 2024

A closely followed crypto strategist says one under-the-radar decentralized finance altcoin looks ready for a big upside move.

Pseudonymous analyst Credible Crypto tells his 403,900 followers on the social media platform X that he’s bullish on the native asset of the decentralized exchange and automated market maker Convex Finance (CVX).

The trader shares a chart suggesting that CVX is primed to ignite a wave-three surge against the US dollar.

“I think an explosive move for CVX is just around the corner.

With the BTC pairing approaching major demand/support and the USD pairing already bouncing off of it – I think we are approaching a short window of outperformance on CVX.

Targeting $4.70 to start.”

Credible practices the Elliott Wave theory, which states that a bullish asset tends to witness a five-wave surge. According to the theory, wave three is the strongest and most impulsive wave of the rally.

Based on the trader’s chart, he appears to predict that CVX’s wave three rally will push the coin toward the $4.40 level before a wave four pullback and a fifth wave surge at around $7.

At time of writing, CVX is trading for $2.98, up nearly 25% in the past day.

Turning to XRP, the analyst predicts one more leg down for the altcoin prior to a big breakout rally toward $1.

“For now, we are still in a ranging environment – but if we get $0.50 or below again (green zone) I’ll be interested in a potential trade.”

At time of writing, XRP is worth $0.597.

As for Ethereum (ETH), Credible sees a scenario where the leading altcoin takes a dip below $2,800. But he notes that the correction will only take place if Bitcoin (BTC) shows weakness.

“This still makes the most sense to me. Would need a correction on Bitcoin for this to happen though so let’s see what we get.”