- Summary:
- Ripple price has been steadily trading lower since the end of April. To make the setup more bearish for XPRUSD, a head and shoulders pattern has formed.
Ripple price has been steadily trading lower since late April. This is evidenced by the falling trendline which becomes apparent when connecting the highs of April 30 and May 9. In fact, in the 4-hour time frame, XRPUSD is currently testing resistance at the trendline around $0.2022.
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A closer look at the 1-hour chart paints an even more bearish picture of the cryptocurrency. XRPUSD has recently made 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 chart pattern is considered as a bearish reversal signal. This means that a strong close below the $0.2000 handle would effectively break the neckline support and the 100 SMA. It could then trigger a sell-off to $0.1944 where ripple price bottomed on May 15.
However, be wary of a strong bullish close above the high of May 18 at $0.2062. This could invalidate the head and shoulders chart pattern. Instead of sellers dominating market sentiment, it could suggest that there are still buyers left in the market as it will have already broken the trendline resistance. Should this happen, we could soon see ripple price rally to $0.2225 where XRPUSD topped on May 9.