Bearish Flag Still Valid
Remember the bearish flag chart pattern I pointed out on ripple price earlier this week? It is still valid. On the daily time frame of XRPUSD, it can be seen that the cryptocurrency is still trading within its consolidation following it’s sharp drop. While this is classified as a bearish continuation pattern, bearish flags do not indicate when a market would continue its sell-off.
On a technical perspective, a close below the recent lows or the flag signals a potential drop. For ripple price, this means that a close below the low of March 17 at $0.1398 could mean a fall to the cryptocurrency’s low on March 13 at $0.1140. If support at that price does not hold, the next floor could be at $0.6230 where ripple price peaked on March 20, 2017.
Ripple Price Chart, Daily
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Inverse Head and Shoulders on XRPUSD H1
It’s also worth noting that XRPUSD still has some room to trade higher and still maintain its downtrend. By connecting the highs of February 15 and March 7, it can be seen that there is trend line resistance at $0.1805. The hourly timeframe also suggests that there may still be buyers in the market to push price higher.
From March 20 to March 22, XRPUSD has made lower lows. However, on March 25, it made higher lows. This price action has allowed for an inverse head and shoulders pattern to form. This chart pattern suggests that ripple price may soon trade higher to the trend line resistance (which I pointed out on the daily time frame). If there are enough buying pressure, a close above the trend line may even mean a rally to $0.2140 where ripple price topped on March 9.