Ripple Price Breaks Uptrend With Technicals Suggesting More Downside Potential

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Written By: Angeline Feliciano

May 13, 2020, 06:11 BST 06:11

Ripple XRPUSD

Summary:

Ripple price has been pushed below trendline support. With XRPUSD no longer in an uptrend, does this mean we could see a bigger sell-off soon?

Unlike bitcoin, ripple price has been unable to sustain its uptrend. On the daily time frame, it can be seen that XRPUSD is trading below trendline support from connecting the lows of March 13, March 16, and April 20. Does this mean that there is more downside potential for the cryptocurrency?

The 4-hour time frame affirms this bearish assumption. A closer look at ripple price would show that it has been consolidating by making lower highs and higher lows. Because this follows a strong drop, a bearish pennant has become apparent on XRPUSD. When you attend our free forex trading course, you will learn that a downside break often triggers a bigger sell-off. This means that a close below the low of May 11 at $0.1843 could imply that ripple price is on its way to its May 10 lows at $0.1789. If there are enough sellers in the market, the cryptocurrency could even fall to its April 16 low at $0.1737.

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On the other hand, a bullish close above the high of May 10 at $0.2021 would effectively invalidate the bearish chart pattern. It could signal that there are still buyers in the market. Should this be the case, we could expect ripple price to trade higher to $0.2116 where it could test the previous trendline on the daily time frame and the lows of April 30, May 4, and May 6.

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.