- Summary:
- Ripple price has been hovering around the $0.2050 level for the past trading week. With this tight a consolidation, should we brace for a breakout?
Ripple price has been consolidating around $0.2050 since last week. XRPUSD has been bouncing off support at $0.2000 and resistance at $0.2070 since June 2. When you enroll in our free forex trading course, you will learn that breakout often follow consolidations. Now the question is, which direction will ripple price break out to?
The hourly time frame could provide us with more clues. By connecting the highs of June 4 and June 7, it can be seen at XRPUSD is currently testing resistance at the falling trendline. Reversal candlesticks around its current price at $0.2030 could indicate that we may soon see ripple price fall. Near-term support for the cryptocurrency would be at $0.1996 where it bottomed on June 7.
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On the other hand, before you take on a bearish position on ripple price, you should take note of the cryptocurrency’s recent price action. XRPUSD has been consolidating in a tight range since late Friday. Because this follows after a sharp rally, a bullish pennant chart pattern has formed. This is widely considered as a bullish continuation indicator. A strong close above recent highs at $0.2037 could mean that there may be enough buyers in the market. With this, we could soon see ripple price rally to its June 4 highs at $0.2070. If resistance at that price level does not hold, the next resistance level could be at $0.2130 where XRPUSD topped on May 31.