Ripple price finished yesterday’s trading in the red, losing over 2.80%. XRPUSD closed the day at $0.1834, down from where it opened at $0.1900. Technicals from the daily to the 1-hour time frames suggest there is more downside potential ahead.
On the daily time frame, it can be seen that ripple price has recently been making lower highs after a series of higher highs. Consequently, a head and shoulders chart pattern has become apparent. When you enroll in our free forex trading course, you will learn that this is widely considered as a bearish reversal signal/ A strong bearish close below the low of June 9 at $0.1710 could mean that there is more selling ahead of ripple price. We could soon see the cryptocurrency fall to its March 13 lows around $0.1140.
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The hourly time frame also shows what looks like a bearish flag. This chart pattern is characterized by a slightly-upward consolidation which follows after a sharp drop. A close below the low of June 24 at $0.1812 could trigger the bigger sell-off on the daily time frame.
On the other hand, it is worth reiterating that nothing is set in stone in the financial markets. A strong bullish close above today’s Asian session highs at $0.1838 could invalidate the bearish flag chart pattern. If there are enough buyers in the market, XRPUSD could trade all the way up to its June 22 highs at $0.1905. A strong close above this price would then invalidate the head and shoulders pattern and hint at more bullish momentum for ripple price.