- Summary:
- The general USD strength we're seeing in today's trading has not spared ripple price. XRPUSD lost 7.40% with technicals suggesting more weakness.
Ripple price also fell victim to the US dollar’s strength along with higher-yielding currencies. Yesterday, XRPUSD fell by 7.40% when it closed at $0.1879. The recent uptick on the dollar was brought about by drastically-rising coronavirus cases in the US (again) which may be attributed to businesses re-opening. Consequently, a few investors are worried of another lockdown and technicals also suggest more downside ahead.
On the daily time frame, it can be seen that ripple price seems to have formed a head and shoulders chart pattern. This is characterized by lower highs after a market forms a series of higher highs. When you enroll in our free forex trading course, you will learn that this is widely considered as a bearish reversal indicator. It would also look as though XRPUSD has closed below the neckline support around $0.1900. This could hint that sellers are dominating trading and that we could soon see ripple price fall to near-term support around $0.1387 where XRPUSD bottomed on March 13.
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Alternatively, you should be wary of a strong bullish close above the highs of June 2 at $0.2144. A break of this price would invalidate the head and shoulders pattern. It could consequently mean that there are still buyers in the market that could push ripple price to its April 30 highs at $0.2320.