Ripple price broke higher after a falling wedge formation and now consolidates before the next leg higher. If the falling wedge is not enough for bulls, the current consolidation looks like a pennant – a continuation pattern pointing to a move to 0.45.
The crypto market came to life in 2020, especially in the second quarter of the year. The combined market value of all the cryptocurrencies surged back over $200 billion, lead by investors flocking into alternative assets.
Investors’ reaction to the pandemic took a strange course. Initially, gold sold, and USD moved higher. All that time, ripple price and other crypto assets declined too.
However, by the time gold bounced back, so did the cryptocurrencies. Ripple price recovered from the low close to 0.1 in late March, to trade now close to 0.3.
A similar move is seen on all cryptocurrencies. As the stock market bounced back, so did risk-on, but also gold and silver. The question here is – can ripple price move higher now that the falling wedge pattern ended?
Pennant Projecting Ripple Price Higher
A falling wedge pattern appears at the end of bearish trends. In ripple’s case, the wedge took more than one and a half years.
The price kept pushing for new lower lows. At the same time, the series of lower highs remained in place.
But this changed with the 2-4 trendline’s break. Not only that ripple broke higher, but the current price action suggests more strength ahead.
First, it is the falling wedge. Very often, after the break higher, the market starts a strong trend that continues all the way to a minimum 50% retracement of the falling wedge’s length. That means 0.5 for ripple price.
Second, the pennant formation. On a break higher, the measured move projected from the pennant’s consolidation area gives 0.45 as a target.
The invalidation level, or the stop-loss, for any long trade, is 0.25, so to avoid any selloff designed to take weak bulls out of the market.