The XRP price has seen some big sales in the past six days. Sellers quickly gave up the token when the price hit $ 1, lowering the XRP by 20%. However, the downward trend has turned into a strong buying opportunity.

XRP increases more than 30% to $ 1

The XRP price is currently testing a neck breakout from the previous head and shoulders pattern on the Point & Finger Chart (P&F) of $ 0.01 / $ 3 box. The model developed by P&F is the spike model. Spike is a reversal pattern that signals an uptrend.

The theoretical trading setup for the XRP price is a buy stop at $ 0.86, a 4 box stop loss at $ 0.82, and a profit target of $ 1.10. This trading setup has a reward / risk ratio of 6: 1. In addition, a two- to three-cell stop order helps protect any implicit profit entry.

The buy stop order is at $ 0.86 at press time, but the current O column could be falling. In this case, the entry and the stop loss also decrease. For example, if the XRP price drops another three O’s to $ 0.79, the buy stop order converts to $ 0.82 and the stop loss converts to $ 0.79. The profit target remains the same.

XRP / USDT $ 0.01 / 3-box reversal P&F chart.

There is no cancellation for a theoretical long trade setup. By nature, spike patterns do not recognize lows or highs until a reversal occurs. Traders should expect a slowdown in resistance or momentum as XRP price declines around 50% of the O column.

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