- Summary:
- Ripple price has extended its winning streak to 6 straight days. However, a closer look at the hourly time frame suggests that it may soon run out of steam.
Ripple price has extended its winning streak to 6 consecutive trading days yesterday. On the daily time frame on XRPUSD, it looks like it is poised to rally to its September and November highs at $0.3150 soon.
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However, a closer look at the hourly chart suggests that the bullish run on ripple price could be running out of steam. The cryptocurrency has been consolidating with an upward slope. In forex trading, this could qualify as a rising wedge chart pattern. It is considered as a bearish reversal signal. Consequently, it suggests that XRPUSD may soon fall. By connecting the lows of February 2 and February 4, we can see that ripple price has some room to trade lower and still maintain its recent uptrend. There seems to be trend line support around $0.2650. This price also coincides with the area between the 100 SMA and 200 SMA.
Reversal candles around this price could suggest that the drop on ripple price is nothing more than just a pullback. It may soon resume its upward rally. On the other hand, a strong bearish close below $0.2650 could hint at a bigger sell-off to $0.2470 where ripple price bottomed on February 3 and 4.
On the other hand, a bullish close above yesterday’s highs around $0.2880 would invalidate the bearish chart pattern. Instead, it could suggest that the bullish run on XRPUSD would continue.