XRP Price Explodes 6.6%: Here Is the Next Target

XRP has just produced the cleanest bear trap on the daily chart in months. Price opened at $1.00123, sliced below the dollar to a low of $0.99524, then reversed hard to close at $1.06738, up 6.62% on the day. Anyone who shorted the breakdown below $1 was underwater within hours.

Why XRP Price is up today

The market-wide catalyst was the US Treasury doubling its long-dated bond buybacks, which pushed yields and the dollar lower in what traders quickly labelled "QE Lite." Risk assets rallied across the board. XRP's move, though, has a second component that is purely technical, and it is more interesting than the macro story.

The play-by-play

Step 1: The setup. XRP had been bleeding lower since late July, grinding down from $1.15 toward the dollar in a steady sequence of lower highs. By mid-August it was pinned directly on $1.00, the most watched round number on the chart.

Step 2: The break. Price finally gave way and traded to $0.99524. On paper, a horizontal support that had held for over a week was gone. That is the signal short sellers wait for, and stop-loss orders from long holders sit directly beneath it.

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