Ripple Price Back Into Flag Formation On Choppy Price Action
Ripple price (XRPUSD) action continued its choppy movements into Friday trading, falling back into the flag consolidation area from which it broke out earlier in the week as several crypto assets struggle to recover from Wednesday’s slump.
Ripple price is now at 0.27500 as at the time of writing, even as its correlated asset (BTCUSD) continues to struggle to get any traction to take it above the 10,000 mark. Ripple price recovery is now looking more uncertain after Bitcoin was only able to make a weak bounce off the 9480 support line.
Ripple price continues Wednesday’s descent well into yesterday’s trading session, but it was able to find support at the lower border of the flag’s consolidation area. Price bounced from there this morning and upside is now restricted by the upper boundary of the flag consolidation area. Heading into the weekend, the consolidation is expected to serve as the short-term guidance for support and resistance heading into the weekend.
A break of the channel consolidation to the upside targets 0.28408 as the initial resistance. Further upside towards 0.30925 is dependent on Ripple price closing above 0.28408 with a 3% penetration, or registering two successive candlestick closes above that price level.
On the flip side, Ripple price would need to breakdown the consolidation area’s lower border to target the 0.25038 support level. 0.23428 is the next support target below this area and will require the same price/time filters to be fulfilled for the move to become a reality.
Moves on the XRPUSD are highly correlated to BTCUSD, and if we see more selling on Bitcoin this weekend, this could favour the downside move. More buying on BTC would see Ripple price possible aim for the upside targets. Otherwise, a lukewarm mood in the crypto markets could present range trading opportunities for XRPUSD traders, as price oscillates between the upper boundary and lower border of the consolidation area.