Daily and weekly XRP candles form a huge bear trap – here is the next step

The XRP price action hovered on the verge of a flash crash long before the widespread Saturday sell-off. Lows were expected for the eighth largest cryptocurrency.

The XRP price could reverse if …

The XRP price is positioned for a major rally after the flash crash. The daily and weekly candlesticks have probably created one of the most massive bear traps in altcoin history. FOMO is coming soon, especially if XRP makes a return to the $ 1 region.

Since XRP has already triggered the previously forecast prices, it could start the next stage higher. To do this, the price must first close at or above the daily Kijun-Sen at USD 0.98. Additionally, the altcoin needs a daily close at $ 1.21 to trigger a definitive bullish breakout. If successful, the expected target range is in the $ 2 zone followed by $ 3.35.

XRP / USDT daily Ichimoku chart.

However, downside risks remain. The lawsuit between the SEC and Ripple has been pursued by XRP since last year, and any sign of uncertainty or negative outlook for Ripple could weigh heavily on the token price. The downside risk at the 2021 volume checkpoint is $ 0.45.

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