xrp crypto news

XRP develops a rare bullish Japanese candlestick pattern that could return Ripple to $1

Ripple flows out of exchanges as Bitcoin and Ethereum inflow spikes
Written by publisher team

  • XRP price action develops 2 consecutive daily candlesticks inside the bar.
  • A rare and powerful bullish reversal pattern is in development, confirmation still needed.
  • Downside risks remain but are likely to be limited.

XRP price could return to the leadership position in the altcoin market if it can pull confirmation on one of the most powerful and rare Japanese candlestick patterns: Squeeze Alert.

Monster Bear Trap XRP Price Locating & Short Squeeze

XRP price has a very positive number of bullish confluence levels on the daily chart. Between the candlestick chart and its oscillators, XRP can make a big surprise and start a huge rally. XRP will first need to complete and confirm a bullish Squeeze Alert pattern to start a maneuver that could start a new bull market.

Pressure Alert (bullish) is a 3-session reversal indicator that predicts the transition of a new uptrend. It is a rare pattern and is one of the most compelling bullish reversal indicators in candlestick analysis. The possibility of a bullish reversal from this pattern increases if a pressure alert develops near the support level.

  1. The first session is in black (the color of the traditional bearish Japanese candles, and the contemporary ones are red).
  2. The second session can be white (green) or black (red).
    1. The high of the second session is lower than the high of the first session.
    2. The bottom of the second session is above the low of the first session.
  3. The third session can also be white (green) or black (red).
    1. The high of the third session is lower than the high of the second session.
    2. The low of the third session is above the low of the second session.

However, while the current structure shows that Squeeze Alert is almost complete, confirmation can only occur if an undeniably bullish daily candle has developed within 2-3 periods after the third session. For example, a bullish engulfing candle or a bullish marubozu will definitely confirm a bullish pressure alert.

Contributing to the possibility of a bullish reversal in the XRP price is the formation of the Composite Index of support and a rally towards the crossover above its fast-moving average. Meanwhile, the %B oscillator is about to cross again above the 0.2 level, which gives a strong signal that the recent bearish move is likely to be a huge bearish trap.

XRP / USD Ichimoku Daily Chart

Buyers should expect an easy move to rest the resistance at $0.90 where there is currently Kijun-Sen, 38.2% Fibonacci retracement, and cloud bottom (Senkou Span A). Above that, the next major hurdle is the critical and vital $1.00 level. Ultimately, the bulls will need to close and stay above the $1.00 level to follow any new major uptrend.

The outlook for a bullish reversal will be invalidated if sellers push XRP to close below the 50% Fib retracement at $0.68. In this scenario, the price of XRP is likely to drop to $0.55 and even deeper to the initial support area near the $0.36 value area.

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