- Summary:
- Ripple price has been holding steady above $0.1450 as of late. However, a bearish flag chart pattern has formed which suggests at a potential sell-off.
Bearish Flag on D1 of XRPUSD
Ripple price has been holding steady above $0.1450 as of late. The daily time frame shows that the cryptocurrency has been consolidating with an upward slope after it drastically dropped a couple of weeks ago. Consequently, a bearish flag chart pattern has formed. This is considered as a bearish continuation pattern. A close below at $0.1277 could mean that there is more downside ahead for ripple price. It could soon drop to near-term support at $0.1139 where it bottomed on March 13. If support at that price does not hold, the next floor could be at $0.0615 where it topped on April 3, 2017.
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Inverse Head and Shoulders on H1 of Ripple Price
On the other hand, it’s worth noting that ripple price still has room to trade higher and still maintain its down trend. By connecting the highs of February 15 and March 7, it can be seen that there is trend line resistance at $0.1838. This price also coincides with the previous lows on XRPUSD, established on December 18 and January 2.
A closer look at the 1-hour time frame shows that there is upside potential on the cryptocurrency. Ripple price has recently made higher lows after making lower lows. Consequently, an inverse head and shoulders pattern has formed. This is considered as a bullish reversal signal and a bullish close above the neckline at $0.1617 could trigger a rally on XRPUSD. Near-term resistance is at $0.1752 where ripple price topped on March 20. However, if resistance does not hold, we could see it trade even higher to the trend line at $0.1838.