Ripple price finished yesterday’s trading in the red, losing over 2.80%. XRPUSD closed the day at $0.1834, down from where it opened at $0.1900. Technicals from the daily to the 1-hour time frames suggest there is more downside potential ahead.
Head and Shoulders Spotted on XRPUSD
On the daily time frame, it can be seen that ripple price has recently been making lower highs after a series of higher highs. Consequently, a head and shoulders chart pattern has become apparent. When you enroll in our free forex trading course, you will learn that this is widely considered as a bearish reversal signal/ A strong bearish close below the low of June 9 at $0.1710 could mean that there is more selling ahead of ripple price. We could soon see the cryptocurrency fall to its March 13 lows around $0.1140.
The hourly time frame also shows what looks like a bearish flag. This chart pattern is characterized by a slightly-upward consolidation which follows after a sharp drop. A close below the low of June 24 at $0.1812 could trigger the bigger sell-off on the daily time frame.
On the other hand, it is worth reiterating that nothing is set in stone in the financial markets. A strong bullish close above today’s Asian session highs at $0.1838 could invalidate the bearish flag chart pattern. If there are enough buyers in the market, XRPUSD could trade all the way up to its June 22 highs at $0.1905. A strong close above this price would then invalidate the head and shoulders pattern and hint at more bullish momentum for ripple price.