- Summary:
- Ripple price surged past the neckline resistance of the inverse head and shoulders yesterday. Can XRPUSD rally to $0.3100 today?
Remember the inverse head and shoulders pattern I pointed out on the daily chart of ripple price yesterday? There were enough buyers to push price beyond the neckline resistance around the $0.2600 handle. As of this writing, XRPUSD is trading above $0.2700. If buyers can sustain their rally in this week’s trading, the next resistance level is above $0.3100 where ripple price peaked on September to November 2019.
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On the other hand, if sellers take charge, we could see XRPUSD pull back some of its gains. By connecting the lows of February 2 and February 4, we can see that there is trend line support around $0.2550. This price also aligns with the 61.8% Fib level when you draw the Fibonacci retracement tool from the low of February 4 to today’s high. Reversal candles around this level could suggest that the rally to $0.3100 on ripple price is still intact. Watch out for dojis and hammers around this level.
On the other hand, be wary of a strong bearish candle closing below the rising trend line. It could suggest that the short-term uptrend on XRPUSD has been invalidated. Ripple price may then fall to $0.2350 where it previously found support.