After a larger cycle WXY correction, ripple could be starting a new bull cycle here. However it is possible that the current rally is a X wave (Correction wave in a trend), which consists out of a three wave cycle. If you look at the previous X wave rally that happened in april you can see roughly the same pattern. And look where that ended up going...
Interestingly, one big difference is that the current rally was preceded by a large dubbel bottom. This is a bullish signal on the larger timeframe, and could indicate the larger WXY correction is ending. This is usually followed by atleast 1 bullish cycle leading to aproximately ATH (1.618 - 2.618 ext. wave 1).
So, since we could now potentially be in wave 1 of a bullish cycle, we start looking for possible bounce zones for what should be wave 2. A common retrace point for W2 is the previous structure high (so high of the dubbel bottom) at .375. This level happens to roughly confluence with the 85% correction of wave 1. If price doesn't bounce here and breaches the red zone the bullish count stays valid until newer lows are formed, but bear in mind that it is likely that breaking the zone will increase the likelihood of bear trend continuation.
Interestingly, one big difference is that the current rally was preceded by a large dubbel bottom. This is a bullish signal on the larger timeframe, and could indicate the larger WXY correction is ending. This is usually followed by atleast 1 bullish cycle leading to aproximately ATH (1.618 - 2.618 ext. wave 1).
So, since we could now potentially be in wave 1 of a bullish cycle, we start looking for possible bounce zones for what should be wave 2. A common retrace point for W2 is the previous structure high (so high of the dubbel bottom) at .375. This level happens to roughly confluence with the 85% correction of wave 1. If price doesn't bounce here and breaches the red zone the bullish count stays valid until newer lows are formed, but bear in mind that it is likely that breaking the zone will increase the likelihood of bear trend continuation.