Reasons for a Bullish Bias on Ripple Price
Although ripple price has been consolidating around the $0.2200 psychological handle for the past few trading days, the cryptocurrency’s uptrend is still intact. By connecting the lows of March 13, March 16, and April 20, we can see that trendline support is around $0.2065. This price also corresponds to the 50% Fib level when you draw the Fibonacci retracement tool from the low of April 20 to the high of April 30.
Download our Q2 Market Global Market Outlook
It’s also worth pointing out that because the recent consolidation on XRPUSD follows after a sharp rally, a bullish pennant has become apparent. This chart pattern is considered as a bullish continuation indicator. A bullish close above the high of May 3 at $0.2267 would effectively be considered an upside break. It could mean that ripple price is on its way to near-term resistance at $0.2360. If there are enough buyers in the market, we may even see XRPUSD make a run for the $0.3400 handle where it topped on February 15.
Keep Tabs on the Rising Trendline
On the other hand, a bearish close below the trend line support at $0.2065 would effectively invalidate the uptrend on ripple price. It could then mean that the cryptocurrency is headed lower, possibly to its April 16 lows at $0.1800.