On April 25th, Electra hit a relative low of 16 sats. Today - May 10th - Electra hit a high of 40 sats...a 150% increase in just two weeks! Let's get into it by checking out the recent price action:
5 waves up (labeled in white), 3 waves down (labeled in red), and we are currently in the middle of another 5 waves up (labeled in blue), and may have just finished wave 3. Yesterday I posted this same exact chart just as price was hitting the first possible target of 31 sats. Further, I did hint that I expected price to continue upwards, though you can never be too confident. Sure enough, price continued up from 31 sats and at the close of the 7:00 UTC candle, we hit 40 sats...just a hair over the second Fibonacci ratio of 2.62x wave 1 ("possibility 2" on the chart above).
Elliot Waves states that for every actionary movement upwards, there is a reactionary (corrective) wave downwards. Given the current price action, I believe that we are currently in one of these "reactionary" waves, labeled as wave 4 on the chart above. I am quite confident when I say that wave 3 has completed. We are now correcting downwards from 40 sats to find the bottom of wave 4. What do we do?! Do we let our emotions get a hold of us and panic-sell? Awareness is key. For those who are aware, we all expected a corrective wave 4...and here we are! If you were aware, you would have laddered in your sells as price neared the next Fib range, sold at the top, and will be buying back at the bottom of wave 4. This is only important if you are trading versus long-term holding.
Wonderful returns, indeed. Let's check the shorter-term perspective:
IF this analysis is correct (which I believe it is), wave 3 has topped at 40 sats. Given the Fib ratios, we should expect to see a corrective wave 4 that will retrace 23.6% (35 sats), 38.2% (32 sats), or 50% (29 sats) of wave 3, as noted in the above chart. This correction should happen in an ABC form, though it does not necessarily have to. Once this correction has completed we should resume the upwards trend to complete wave 5 of 5.
Keep in mind that the top of lower-degree wave 5 should be the top of higher-degree wave 3:
So, moving forward, what do we expect? Expect a corrective wave 4, then one more run up to the top of wave 5 which, again, will be the top of a higher-degree wave 3. After a total of 5 waves up, should we be taking buying or selling actions?
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