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Ripple price
Ripple price

Ripple Price Forms Inverse Head and Shoulders at 100 SMA Hinting at a Potential Rally

    Summary:
  • Ripple price is off to a bullish start for the week. As of this writing, XRPUSD is up by over 2.30% with technicals suggesting more upside potential.

Ripple price is off to a bullish start for the week. As of this writing, XRPUSD is up by over 2.30% as it trades around $0.1935. Technicals also suggest that there is more upside potential.

On the 4-hour time frame, it can be seen that with the cryptocurrency trading around its current price, it is testing support at the 100 SMA. A bullish marubozu seems to be in the making which could suggest that ripple price may soon trade higher.

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A closer look at the 1-hour time frame also affirms this bullish bias. Ripple price has made higher lows as of late. Because these follow a series of lower lows, an inverse head and shoulders pattern has become apparent. This is widely considered as a bearish reversal pattern. A break above the neckline resistance at $0.1963 could suggest that XRPUSD is about to rally. Near-term resistance is at $0.2055 where ripple price topped on April 7. If it does not hold, the next ceiling would be at $0.2113 where the cryptocurrency peaked on March 10.

On the contrary, a bearish close below the low of April 17 at $0.1864 could invalidate the inverse head and shoulders. It could indicate that there are still sellers in the market that could push ripple price to support at $0.1770.