- Summary:
- After a massive sell-off earlier this week, ripple price seems to have steadied in today's Asian session. But the question is, for how long?
On the daily time frame, we can see that the sell-off on ripple price on March 8 was enough for the head and shoulders pattern on the cryptocurrency to be completed. XRPUSD broke the neckline support which was around $0.2240. If sellers continue to dominate trading, ripple price may soon fall to its December 17 lows around $0.1800.
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The 4-hour time frame suggests that sellers may only be taking a pause. After the sharp drop on XRPUSD, it spent the last few hours of trading in a consolidation. Consequently, a bearish flag chart pattern has formed. In forex trading, this is considered as a bearish continuation pattern. A close below the low of March 9 at $0.1977 could mean that ripple price is headed to the major support level I pointed out on the daily time frame.
On the other hand, a bullish close above yesterday’s high at $0.2117 would invalidate this bearish chart pattern. Instead, it would suggest some buying pressure in the market. XRPUSD may then trade higher to the confluence of resistance around the $0.2300 psychological handle. For one, this price coincides with the 61.8% Fib level when you draw the Fibonacci retracement tool from the high of March 6 to yesterday’s low. This price also coincides with previous lows on XRPUSD.