XRP starts short squeeze as a bear trap to get the price down to 1. to press

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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