Inverse Head and Shoulders at Trend Line of XRPUSD H1
Remember the trend line I pointed out on ripple price yesterday? It held perfectly. XRPUSD bounced off of it and an inverse head and shoulders pattern even materialized. When you enroll to our forex trading course, you will learn that this is considered as a bullish indicator. Ripple price looks to have already broken resistance at the neckline. It may mean that there may already be enough buyers in the market that could push XRPUSD higher to its previous highs at $0.2500.
Ripple price, 1-hour chart
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Resistance at Fib level and Previous Low
However, it’s not unusual for price action to retrace some of its gains and re-test the neckline for support. Reversal candles could indicate that ripple price ma still trade lower. Near-term support is around $0.2390 where the rising trend line (from connecting the two most recent lows) and neckline coincide. If support does not hold there, we could see an even bigger drop. It’s worth-noting that on the daily time frame, XRPUSD is testing resistance at the 38.2% Fib level (drawing the Fibonacci retracement tool from the high of October 26 to the low of December 18). Additionally, this price coincides with previous lows and the 100 SMA. If trend line support around $0.2300 does not hold, the next floor could be at $0.1740 where XRPUSD bottomed in December.