For the past three days, ripple price has lost more than 4%. After peaking at $0.1904 this week, XRPUSD is now trading at $0.1821. However, technicals on the 1-hour time frame hints that we could soon see the cryptocurrency trade higher.
Inverse Head and Shoulders on Ripple Price
A close look at ripple price would show that it has been making higher lows after it initially made lower lows. Consequently, an inverse head and shoulders chart pattern has formed. When you enroll in our free forex trading course, you will learn that this is widely considered as a bullish reversal pattern. A strong close above yesterday’s highs at $0.1837 could mean that there are still buyers left in the market. Should this happen, we could soon see ripple price trade all the way up to $0.1880 where it could test the 200 SMA and falling trendline (from connecting the highs of June 2, June 17, and June 24). If there are enough buyers in the market, we may even see the cryptocurrency go all the way up to $0.1988 where it topped on June 17.
On the other hand, the 4-hour timeframe shows that the recent price action on ripple price has been a tight consolidation. Because this follows after a strong sell-off, a bearish pennant chart pattern has formed. This is considered as a bearish continuation indicator and a break below yesterday’s low at $0.1783 could mean that there is still more downside potential ahead of XRPUSD. It could go all the way down to its June 9 lows at $0.1710.