SUMMARY
The personality trait of Cryptos is more similar to commodities than equities in that the extended 5th is so common. For commodities, this occurs because of leverage; but for Cryptos, I believe it occurs because of immaturity in liquidity or immature Metcalfe's law. However you want to put, if leverage is to be added through expansion of CME futures to Altcoins, the prevalence of extended 5ths will become much higher.
The below chart shows that Reddcoin (RDD) has a very extended 5th which becomes a warning for a deep retracement. Quite often, the correction goes as deep as the prior wave 2.
The bottom horizontal line shows the price level of the prior wave 2 and given how extended the 5th wave was, this could be the correction bottom target or at least a point between wave 4 and 2. The time extension also needs to be taken into account because extended 5th also means a longer than expected time to correct. To this end, the blue and the white arrows carve out what could be a multimonth price rounding formation. In effect, this correction has a potential of lower low and longer time extension.
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