Can Ripple Price (XRPUSD) Breakout Higher and Extend Its Uptrend?

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Written By: Angeline Feliciano

May 07, 2020, 04:55 BST 04:55

Ripple Price

Summary:

Although ripple price has spent the last few trading days in consolidation, its technical setup suggests that it could soon breakout higher.

Reasons for a Bullish Bias on Ripple Price

Although ripple price has been consolidating around the $0.2200 psychological handle for the past few trading days, the cryptocurrency’s uptrend is still intact. By connecting the lows of March 13, March 16, and April 20, we can see that trendline support is around $0.2065. This price also corresponds to the 50% Fib level when you draw the Fibonacci retracement tool from the low of April 20 to the high of April 30.

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It’s also worth pointing out that because the recent consolidation on XRPUSD follows after a sharp rally, a bullish pennant has become apparent. This chart pattern is considered as a bullish continuation indicator. A bullish close above the high of May 3 at $0.2267 would effectively be considered an upside break. It could mean that ripple price is on its way to near-term resistance at $0.2360. If there are enough buyers in the market, we may even see XRPUSD make a run for the $0.3400 handle where it topped on February 15.

Keep Tabs on the Rising Trendline

On the other hand, a bearish close below the trend line support at $0.2065 would effectively invalidate the uptrend on ripple price. It could then mean that the cryptocurrency is headed lower, possibly to its April 16 lows at $0.1800.

Written By: Angeline Feliciano

Angeline Feliciano has been trading Forex for over ten years. She has invaluable experience working in FX education companies like BabyPips.com and Learn to Trade as a trader, currency analyst, trading coach, and presenter. Aside from these roles, she has also created intensive educational content on fundamental analysis which is heavily sought after by retail traders. She has taught hundreds of people how to trade the FX market in the Philippines and in Australia. When she is not trading, you can find her in the gym lifting weights.