XRP Price Prediction: Christmas rally to $1.70 begins with a Pole Pattern
- XRP price moves into an entry zone that could generate a substantial drive higher.
- A bullish reversal is likely to sustain XRP throughout the Christmas holiday.
- Short-sellers are likely to get squeezed.
XRP price action has caught a bit of a bid over the past ten trading days, increasing by over 28%. Little evidence suggests that it will stop, too.
XRP long entry triggered, the opportunity for re-entry remains
XRP price has hit an entry that has been identified in a previous analysis. The theoretical long entry setup is a buy stop or buy limit order at $1.00, a stop loss at $0.80, and a profit target at $1.70. The trade idea represents a 3.5:1 reward for the risk setup. But it’s the pattern that has developed that is most important.
The pattern on the $0.05/3-box reversal Point and Figure chart is a Pole Pattern. Pole Patterns are any column that has less than 15 Xs or Os. Entry rules and conditions seem to vary from one Point and Figure expert to another, but there is broad agreement that entering at 50% of the range of the Pole Pattern column is appropriate.
However, when Pole Patterns develop and only move three or four boxes below a multiple bottom, the entry on the reversal seems to have a higher positive expectancy rate and profitability ratio than the standard entry criteria. Traders will want to watch for any resistance that could occur at the $1.05 to $1.10 value area as that could become a temporary profit-taking zone before XRP price resumes its move higher.
XRP/USDT $0.05/3-box Reversal Point and Figure Chart
This bullish trade setup would be invalid if XRP moved below $0.75. In that scenario, XRP price would probably begin a flash-crash towards the $0.50 value area.
Author
Jonathan Morgan
Independent Analyst
Jonathan has been working as an Independent future, forex, and cryptocurrency trader and analyst for 8 years. He also has been writing for the past 5 years.
