A few hours ago, I was telling you:

"Be patient".

And there, the Asian market is not even open yet that XRP has just dropped a violent red wick to test the critical support zone around 1.41!

In my screenshot, you can see the candle melting all of a sudden.

My -50% P&L must have turned into -80% or worse in a few seconds.

It's guaranteed panic for most beginners.

So, why am I not panicking? And how could I have been trapped?

1. The trap of close liquidation: Remember my dilemma.

I could have aggressively strengthened to lower my entry price, but by raising my liquidation to 1.29.

2. The illusion of safety:

With my current liquidation at 1.189, I kept a cool head. When XRP dropped to 1.41, I didn't have to check my liquidation price every second.

I had some margin.

The "Coaching Moment":

The RSI in Overbought Zone

Look at the RSI indicator at the bottom of my chart (in yellow). It literally touched the floor, falling below the 20 zone (extreme oversold).

This is often a sign that the panic movement is over for the moment and that a buying reaction may occur.

My advice:

Never look at your P&L when the price drops. Look at your liquidation price.

That's what matters. If you have margin, you have no problem, just a trade that takes more time.

What's the next step of the plan?

I stay on my initial position.

Asia is coming and this shake-up has probably liquidated many overly optimistic positions at 50x leverage.

This is a healthy "purge" of the market before, I hope, a rebound.

💬 And you, when you see that red candle on the RSI at 20, do you cut your losses or stick to your plan?

Share your emotions in the comments 👇