Ripple Price Struggles to Find Bids at $0.2000. Is It Headed Lower?

Live Ripple Price Chart

Ripple price has been struggling to find bids in the past few days of trading after it got rejected at $0.2000. In fact, the 1-hour time frame reveals that XRPUSD has been trading on a downtrend as evidenced by the falling trend line when you connect the highs of April 18 and April 20. Any upward movement on the cryptocurrency will likely be limited by the confluence of resistance around $0.1895. Aside from the falling trend line, this price also coincides with the 100 SMA and 200 SMA. Lastly, when drawing the Fibonacci retracement tool from the high of April 20 to the low of April 21, it can be seen that the 61.8% Fib level falls around this area.

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Zooming out to the 4-hour time frame, XRPUSD looks to have been forming lower highs after a series of higher highs. Consequently, a head and shoulders pattern has materialized. This is widely considered as a signal for a sell-off. With that said, you should watch out for a strong bearish close below the low of April 20 at 0.1779. This would effectively break the neckline support and potentially trigger a sell-off to its March 16 lows at $0.1320.

Alternatively, a close above the falling trend line pointed out on the 1-hour chart around the $0.1900 handle could mean that there are still buyers in the market. The next near-term resistance would be at $0.2050 where XRPUSD topped on April 7.

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