Ripple price fell in line with the price of other cryptocurrencies in the last month. As Bitcoin broke below $30k, so did Ripple break important support.
The market keeps forming lower lows, followed by lower highs, in a typical move for a bearish trend. However, the pattern resembles a falling wedge, signaling a possible bullish reversal.
Nevertheless, while inside the wedge, the price action remains bearish. A falling wedge acts most of the time as a reversal pattern, but sometimes it also acts as a continuation one. When the market forms a running triangle, the “wedge” is the last part of a running correction, in this case, a bearish one.
Ripple Price Technical Analysis
Bears may want to stay on the short side while the price action remains inside the falling wedge pattern. On the other hand, bulls need proof of life before going long. Buying while the market is not breaking the series of lower highs is extremely risky.
Therefore, the thing to do is to wait for a daily close above 0.80, and ideally above 0.90, before going long with a stop-loss order at the most recent lower low. As for the take profit, bulls might want to use a risk-reward ratio of 1:2 or even 1:3.