XRP short squeeze incoming as Ripple targets $2.50, bears likely to feel pressure soon

XRP short squeeze incoming as Ripple targets $2.50, bears likely to feel pressure soon
  • XRP price gets a strong bounce and support against critical Ichimoku support.
  • Bullish breakout is likely if XRP can close at or above $1.21.
  • Low risk, high reward buy opportunity ahead.

XRP price has been a source of frustration for bulls and bears alike. Considering that XRP has spent forty-five of the last fifty-one days trading either entirely inside the Cloud or partially inside the Cloud, it’s no wonder why that frustration has occurred.

XRP price positioned for a bullish breakout; the target is $2.50

XRP price could be ready for a massive, explosive move higher. Initially, XRP looked poised to begin its breakout on November 3rd, but it promptly sold off and returned inside the Cloud. After that, however, bulls stepped in and confirmed support against the Kijun-Sen, Tenkan-Sen, Senkou Span A and Senkou Span B – all within the $1.09 to $1.14 value areas. If the test of those Ichimoku levels confirmed support, then a buying opportunity may present itself.

The hypothetical long trade idea would be a buy stop order at $1.21, a stop loss at $1.07 and a profit target at $2.50. An aggressive entry would be right when XRP price hits the entry-level, whereas a conservative entry would wait for a daily close around that entry-level before committing. The stop loss is placed just below the Cloud. The profit target at $2.50 is based on how close the 161.8% Fibonacci expansion level ($2.31) is from the psychological number of $2.50.

XRP/USD Daily Ichimoku Chart

As bullish as the current intraday price is, caution should be maintained. XRP price action has given multiple buy opportunities over the past two months, but buyers have shown zero follow-through. Any failure to attract buyers above $1.22 could position XRP for another fakeout. In addition, the bullish bias will be invalidated if there is a new daily close below $1.00.

Original Source :fxstreet.com

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