Unlike bitcoin, ripple price has been unable to sustain its uptrend. On the daily time frame, it can be seen that XRPUSD is trading below trendline support from connecting the lows of March 13, March 16, and April 20. Does this mean that there is more downside potential for the cryptocurrency?
The 4-hour time frame affirms this bearish assumption. A closer look at ripple price would show that it has been consolidating by making lower highs and higher lows. Because this follows a strong drop, a bearish pennant has become apparent on XRPUSD. When you attend our free forex trading course, you will learn that a downside break often triggers a bigger sell-off. This means that a close below the low of May 11 at $0.1843 could imply that ripple price is on its way to its May 10 lows at $0.1789. If there are enough sellers in the market, the cryptocurrency could even fall to its April 16 low at $0.1737.
On the other hand, a bullish close above the high of May 10 at $0.2021 would effectively invalidate the bearish chart pattern. It could signal that there are still buyers in the market. Should this be the case, we could expect ripple price to trade higher to $0.2116 where it could test the previous trendline on the daily time frame and the lows of April 30, May 4, and May 6.