Archived Article This article was published more than 5 months ago. The market data, prices, forecasts, and analysis were accurate at the time of publication but may have changed since then. Please use this article for historical reference only and refer to our latest content for current market information.
- Ripple price has regained some ground after aggressively selling off and losing over 11% earlier this week but technicals suggest it could drop soon.
Ripple price has regained some ground after aggressively selling off and losing over 11% earlier this week. On Monday, the cryptocurrency bottomed at $0.1789. As of this writing, XRPUSD is trading at $0.2005. However, technicals suggest that ripple price may soon trade lower.
Rising Wedge Spotted on Ripple Price
A close look at the 4-hour time frame shows that the recent price action on XRPUSD has allowed for a rising wedge to form at the 50% Fib level (drawing from the high of May 9 to the low of May 10). This chart pattern, as you will learn in our free forex trading course, is characterized by a narrowing consolidation with an upward slope. It is widely considered as a bearish reversal pattern. A sell-off could be triggered when ripple price closes below the low of May 13 at $0.1986. Should this happen, XRPUSD could fall to its May 10 lows at $0.1789. If there are enough sellers in the market, it could even go as low as $0.1635 where it bottomed on March 30.
Download our Q2 Market Global Market Outlook
However, be wary of a close above yesterday’s high at $0.2064. This could mean that XRPUSD is headed to near-term resistance. It could go up to $0.2124 where it could test the falling trendline (from connecting the highs of April 30 and May 9) and the 100 SMA. A strong close above this price may hint at a potential rally to $0.2250 where XRPUSD topped on May 3 and May 9.