XRP forms a bear trap that could trigger a stop at around $ 1 for short sellers

XRP price is still stabilizing, but bullish signals have surfaced. The best evidence that the bulls are still present is the green ascending trendline that has held for the second straight week, along with the monthly S1 support for December at $ 0.8. Expect the bulls to push the price higher next week, triggering stops by short sellers around $ 1.

XRP bear trap

XRP struggled to hold back losses during the sale month. As Bitcoin lost the psychological mark of $ 50,000, XRP price plunged 44% in just one morning, breaking the green ascending trendline towards the monthly S2 support at $ 0.6. Even so, the uptrend is still holding for the time being as the bears rebound on the green trendline to create a bearish trap for the second straight week.

Next week, expect the bullish sentiment to cause the bears to lose their short positions. The key factor is getting the 200-day Simple Moving Average (SMA) at $ 0.95, with an upward move towards the 55-day SMA at $ 1.05.

For now, any extended rally looks limited as the second green-red trendline crossover gets in the way, certainly with current trends. But if you move to around $ 1.1, XRP will have a 40% return.

XRP / USD weekly chart. Source: TradingView

Unless sentiment turns bullish as headwinds from global markets ease up a bit, prepare for XRP to drop below the initial green rising trendline (bottom line) and possibly lower if another sell-off occurs. Then, with the monthly support from S2 at $ 0.59, a double bottom is formed and held as support next week.

You can see the XRP price here.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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