Does the Head & Shoulders on Ripple Price (XRPUSD) Hint At a Potential Sell-Off?
After surging through the $0.3400 psychological handle, it seems that the rally on ripple price has lost steam. XRPUSD spent last weeks trading trending lower. As of this writing, the cryptocurrency is trading below $0.2800.
A closer look would even reveal a couple of lower highs to succeed the series of higher highs that ripple price made. Consequently, this has formed a head and shoulders chart pattern. In forex trading, this is considered as a bearish reversal signal. A bearish close below last week’s low at $0.2612 would effectively break the neck line support. It could mean that XRPUSD may soon fall to its January lows at $0.2130. If there are enough sellers in the market, we could even see the cryptocurrency drop to its year-to-date lows around $0.1850.
However, it is worth noting that this price also coincides with the rising trend line (when you connect the lows of January 2 and January 25) and the 200 SMA. Reversal candlesticks around $0.2612 could indicate that there are still buyers left in the market. XRPUSD may soon resume its uptrend and re-test the $0.3400 for resistance. If there is enough bullish momentum to sustain the rally above $0.3450, the next major resistance level for ripple price is at $0.4780. This price is where the cryptocurrency peaked on May to June 2019.