Ripple Price Slides Below $0.2000 With More Downside Potential

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Written By: Angeline Feliciano

May 27, 2020, 06:43 BST 06:43

Ripple Price

Summary:

Ripple price has failed to sustain its gains above $0.2000. More than its recent downtick though, tehcnicals suggest there could be more downside potential.

Ripple price has failed to sustain its gains above the $0.2000 psychological handle. More than its recent downtick, however, the bigger picture shows that there could be more downside potential ahead of XRPUSD.

On the daily time frame, it can be seen that the cryptocurrency has made lower highs after a series of higher highs. Consequently, a head and shoulders chart pattern has formed. When you enroll in our free forex trading course, you will learn that this is considered a bearish reversal indicator. Another important technical setup to point out is that the head and shoulders chart pattern materialized at the 50% Fibonacci retracement level (when you draw the Fibonacci retracement tool from the high of February 15 to the low of March 13.

A strong bearish close below the low of May 25 at $0.1750 could effectively break the neckline support. With this, a potential sell-off could happen. Ripple price could then fall to its March 14 lows at $0.1140.

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Alternatively, a strong bullish run beyond the falling trendline (from the high of May 18, May 19, May 20, May 22, and May 24) would invalidate the head and shoulders pattern. Should this happen, we could see XRPUSD rally to $0.2080.

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.