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.
Ripple price chart, 4-hour