XRP price suddenly broke its bearish run on its $0.02/3-box reversal point and extended its gains bullish run until early Sunday, as predicted by the market trend seen on Friday.
The break occurred as the coin tagged the $0.92 level. However, XRP quickly sold off from there. Since the coin’s conversion to the bull market, the pullback from the sales brought XRP back down to $0.75.
This recent happening was a great indication that XRP is not immune to selling pressure either. This may have been caused by last Thursday’s recent US CPI data release. Regardless, new buyers came for the XRP and may be an indication of the continued bullish momentum of XRP’s price.
XRP also entered a bullish pattern last Friday, where it developed the setup to breakout over its Triple Top pattern. However, a slight augmentation was caused by the current O-column turning into the first reversal before the coin became bullish. This led to the coin’s three-box reversal instead of rising above the Triple Top pattern.
In theory, the long opportunity for XRP’s price is a box-stop order at the three-box reversal triggered at the $0.84 level. This theory is still valid as the coin is currently trading near $0.81. If a loss is seen, the price is expected to drop to $0.78. On the other hand, the theoretical target for profit is $1.58. However, profit-taking is expected to happen, theoretically stunting the rise of XRP price to the $1.15 level.
However, as the evidence suggests, this theoretical long opportunity may only be invalidated by the O-column’s return to the bear market. If this happens, the XRP price will likely fall to $0.62.
Since this possibility was observed last Friday, the situation is in favor of the XRP. However, the downside risks are still present, albeit limited.
