Ripple price finished yesterday’s trading with a 2% gain as XRPUSD closed at $0.1894 after starting the day at $0.1857. Today, the cryptocurrency is testing a key resistance level. Will ripple price retreat or rally?
On the 4-hour time frame, it can be seen that ripple price is trading around $0.1889. This price coincides with the falling trendline (from connecting the highs of June 2, June 9, June 11, and June 17). A closer look at XRPUSD would reveal that the last few candles failed to close above this price which is evidenced by their long shadows. Some technical analysts could interpret this to mean that there may not be enough buyers in the market. It could then indicate that XRPUSD may soon fall to $0.1818 where it bottomed on June 15.
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On the other hand, a closer look at the 1-hour chart would reveal that ripple price formed what looks like a double bottom chart pattern. When you enroll in our free forex trading course, you will learn that this is characterized by a market getting rejected at a support level twice. For XRPUSD, that price was $0.1860.
It is also worth noting that ripple price has pared some of its gains back to the 38.2% Fib level (drawing the Fibonacci retracement tool from the low of June 21 to the high of June 23). This price also corresponds to the neckline of the double bottom chart pattern. Reversal candlesticks around its current price level could mean that there are buyers in the market. A strong bullish close above today’s high at $0.1904 could mean that we may soon see ripple price rally to $0.1988 where it topped on June 17.
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