- Summary:
- Ripple price (XRPUSD) is trading around support at the rising trend line and the neckline of a head and shoulders pattern. Which one will hold?
Will Trend Line Support Hold?
The daily time frame of XRPUSD shows that ripple price has given up most of its gains. By drawing the Fibonacci retracement tool from the low of January 24 to the high of February 25, we can see that XRPUSD has found its way back to the 61.8% Fib level. This price, around $0.2685, also coincides with the rising trend line when you connect the lows of January 2 and January 24. Reversal candlesticks around this price could mean that ripple price may soon rally back above $0.3450 where it recently topped.
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Or Will the Neckline Break on XRPUSD?
On the other hand, the 4-hour time frame paints a more bearish picture of XRPUSD. The cryptocurrency has formed a couple of lower highs to follow the series of higher highs that it previously made. The head and shoulders chart pattern I pointed out yesterday is still valid. As you know, this is considered as a bearish reversal signal. A strong bearish close below yesterday’s low at $0.2638 will effectively break support at the neckline. It could indicate a bigger sell-off ahead of ripple price all the way to $0.2180 where it bottomed in January 25.