Double Top Spotted on Ripple Price – XRPUSD. Time to Sell?
I have been saying that ripple price has been on a steady uptrend and looks poised to hit $0.3150 soon. However, the recent price action on XRPUSD suggests that we could see the cryptocurrency may soon give up some ground against the US dollar.
On the 4-hour time frame, we can see that ripple price has gotten rejected at the $0.2900 psychological handle twice. Consequently, a double top chart pattern has formed. In forex trading, this is considered as a bearish reversal signal. The inability of XRPUSD to make higher highs suggests that there are still sellers in the market.
Does this mean that ripple price is due for a sell-off?
By connecting the lows of January 3 and January 25, we can see that the uptrend on XRPUSD is still intact. There is even a confluence of support around $0.2460. For one, the rising trend line falls around this price. Secondly, it coincides with the 100 SMA and 200 SMA. Lastly, when you draw the Fibonacci retracement tool from the low of January 24 to the high of February 9, the price aligns with the area around the 61.8% Fib level. Reversal candles around this price could suggest that ripple price may soon resume its rally to $0.3150.
On the other hand, a strong close below the trend line would invalidate the uptrend on XRPUSD. The cryptocurrency may soon then fall to its January 25 low at $0.2170.