- Summary:
- After being sold off aggressively for the past couple of weeks, it looks like ripple price has finally found some bids. Is it priming for a rally or a drop?
After being sold off aggressively for the past couple of weeks, it looks like ripple price has finally found some bids. The daily time frame shows that XRPUSD has stalled around the $0.2400 handle. However, a closer look at the chart hints that the recent price action on the cryptocurrency could be nothing more than just a pause. The consolidation follows after a sharp drop. Consequently, this has allowed for a bearish flag chart pattern to form. In forex trading, this is classified as a bearish continuation pattern. A strong close below XRPUSD’s recent lows at $0.2230 could mean that it may soon fall to its December 2019 lows at $0.1840.
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The 4-hour time frame reveals that ripple price is testing resistance at the falling trend line (from connecting the highs of February 15, February 19, February 23, and March 2). The reversal candlesticks which recently formed could indicate that sellers will soon drive ripple price lower. On the other hand, a strong bullish close above yesterday’s high at $0.2422 will effectively break the trend line resistance. It could mean that there are still enough buyers in the market. XRPUSD could then begin its potential rally to near-term resistance at $0.2850 where it topped on February 23.