Ripple took a serious beating after peaking at 1.9670 in mid-April and the following correction has been much larger, than first expected taking back just over 78.6%. The fact that the correction from 1.9670 broke back below the peak of wave 1 at 0.7900 told us, that the corrective decline from 1.9670 couldn't be a wave 4 correction as one of the Elliott Wave Principle rules are, that wave 4 is allowed to break into the area of wave 1. Therefore we have counted the rally to 1.9670 as a sub-wave 1/ and the following correction as sub-wave 2/ indicating, that a much more dynamic rally is in store for us once sub-wave 3/ takes over.
A clear break above short-term resistance at 0.7331 will trigger a double-bottom and indicate, that wave 2/ is complete and wave 3/ to way above the peak of wave 1/ at 1.9670 is in motion.
Trading recommendation:
Buy a break above 0.7331 for a new impulsive rally to way above 1.9670. Stops need to go just below 0.5162 to begin with.
