By Franklin Smith
- Ripple price function forms two successive inside-bar daily candles.
- A rare and massive bullish reversal setup emerges but needs confirmation.
- Downside risks remain, though limited.
XRP might lead the alt market in gains if the remittance coin confirms a rare and potent Japanese candle pattern – Squeeze Alert.
XRP Prepares a Short Squeeze and Massive Bear Trap
Ripple price boasts positive bullish confluence zones on the daily chart. The oscillators and candlestick chart might see XRP recording a surprise move and launching a substantial rally. Nevertheless, the alt should complete and authorize a bullish Squeeze Alert formation to introduce a motion that might kick-start a new bullish market.
The Squeeze Alert pattern is a 3-session reversal indicator forecasting turnarounds and new upsurges. Besides being a rare formation, it is among the most lucrative bullish indicators in Japanese candle analysis. Nevertheless, the Squeeze Alert developing around a support floor impairs this bullish reversal pattern.
Though the prevailing structure indicates the Squeeze Alert is almost complete, confirmation may only happen if a decisive bullish 24hr candle forms inside two-three periods post the 3rd session. For instance, a bullish Marubozu or Bullish Engulfing candle would confirm the Squeeze Alert development.
Meanwhile, the Composite index forms support and push high to a cross past the fast-MA, confirming the possible bullish reversal for Ripple price. Also, the %B oscillator nears a cross beyond the 0.2 mark, suggesting that the latest down actions might mean a strong bear trap.
Market players can expect a seamless move towards retesting the $0.90 resistance. Remember, this level houses Senkou Span A (Cloud’s bottom), 38.2% FIB retracement, and Kijun-Sen. Past that, Ripple will see massive obstacles at the crucial value area of $1.0. Meanwhile, XRP bulls should maintain beyond the $1.0 mark to register any new upswing.
XRP sellers will ruin the bullish reversal narrative if they push for a close beneath the 50% FIB retracement near $0.68. In such a case, Ripple price may decline towards $0.55 and further deep to a vital support floor around $0.36.
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