Remember the double top chart pattern that I pointed out yesterday on ripple price? As it turned out, there were still enough buyers in the market just below the $0.2700 handle. The neckline did not break. On the hourly time frame, we can see XRPUSD trading inside a range.
Ripple Price Chart, 1-hour
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In forex trading, this price action is sometimes referred to as a rectangle. It is seen as a neutral indicator unless XRPUSD is able to break to the upside or downside. However, zooming out to the daily chart would reveal that there are likely more buyers than sellers in the market.
The recent consolidation on ripple price follows a sharp rally. Consequently, the daily chart of ripple price shows that a bullish flag chart pattern. This is widely considered as a bullish continuation indicator. A close above the $0.2900 handle could trigger a bigger rally to ripple price’s previous highs at $0.3150. On the other hand, reversal candlesticks at the psychological handle could mean that there are still sellers who could push XRPUSD to the bottom of its range on the hourly chart at $0.2680. If support at that price does not hold, the next support could be at the rising trend line by connecting the lows of January 3 and January 24 at $0.2550.