- Summary:
- With ripple price falling below $0.1800, it continues to be vulnerable to sellers especially with technicals suggesting more downside potential.
With ripple price falling below $0.1800, the cryptocurrency continues to be vulnerable to sellers. As of this writing, the currency pair is trading at $0.1772 which is slightly up from its opening price by 0.09%.
Head and Shoulders on the Daily Chart of XRPUSD
The daily time frame shows that the head and shoulders pattern on XRPUSD remains intact. When you enroll in our free forex trading course, you will learn that this is widely considered as a bearish reversal indicator. It is characterized by lower highs after a series of higher highs. As of this writing, the cryptocurrency is trading around its neckline support at $0.1773. A strong bearish close below this price could indicate a bigger sell-off on XRPUSD. The cryptocurrency may soon then fall to its near-term support at $0.1375 where it bottomed on March 13.
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A closer look at the 4-hour time frame shows that the recent downtrend on ripple price also remains intact. This is evidenced by the fact that XRPUSD continues to trade below the falling trendline from connecting the highs of June 2, June 17, June 24, and June 26. The area around $0.1800 also offers a confluence of resistance. Aside from the falling trendline, it also coincides with the 50% Fib level when you draw the Fibonacci retracement tool from the high of June 22 to the low of June 27.
Reversal candlesticks around this price would suggest that ripple price still has more downside potential ahead. However, a strong close above this price would invalidate resistance at the falling trendline and Fib level. It could then mean that ripple price may soon retest its June 22 highs at $0.1897.