Is Ripple Price (XRPUSD) Bracing for Potential Rally to $0.3400?
After surging past the $0.2000 psychological handle last week, ripple price has been struggling to make significant headway past $0.2300. XRPUSD has spent the past six days hovering around this resistance level. As of this writing, the cryptocurrency is trading at $0.2177 which is 0.16% below its opening price. Should we brace for a sell-off on XRPUSD?
Bullish Pennant on Ripple Price
I would not jump to that conclusion just yet. The daily time frame shows what looks like a bullish pennant chart pattern. Characterized by lower highs and higher lows after a strong rally, this is widely interpreted as a bullish continuation signal. An upside break of consolidation at the highs of April 30 at $0.2361 could mean that ripple price is on its way to the highs of March 6 at $0.2466. If there are enough buyers left in the market, XRPUSD may even rally to its February 14 highs at $0.3400.
Despite this bullish setup, it is worth pointing out that the cryptocurrency is consolidating between the 100 SMA and 200 SMA. The hourly time frame also shows that XRPUSD is testing resistance at the falling trendline (from connecting the highs of April 30 and May 3). A close below the low of May 4 at $0.2165 would invalidate the bullish pennant chart pattern. It could then signal a potential fall to $0.2030 where XRPUSD could test its highs for April 8. This price also corresponds to the rising trendline when connecting the lows of March 16, April 16, and April 20.