Ripple price has declined from above 1.50, where it formed three higher lows – a sign of a reversal pattern. Whenever the technical picture shows three higher lows, it suggests a triangle as a reversal pattern just ended.
The problem for Ripple bulls is that such triangles form at the end of complex corrections. Therefore, it means that the move prior to the first attempt at the 2.0 level, was corrective and not impulsive, as per the rules of the Elliott Waves Theory.
Now that the market reversed, it has found support at the 0.80 level, a level that acted as resistance previously. A break below support should spell more troubles for Ripple bulls, as it suggests more weakness below the 0.5 level.
What’s interesting is that the Ripple price was not strong enough to bounce together with the recent bounce seen in Bitcoin in the last couple of days. Should Bitcoin’s weakness return, Ripple looks poised to break support.
Bulls may want to see a daily close above parity before trying to go long on Ripple price. If that is the case, the invalidation level is at 0.70 while the take profit at 1.5. On the flip side, a close below 0.7 should trigger more weakness – traders may want to target 0.25 with a stop at 1.0
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