Ripple Price (XRPUSD) Forms Head and Shoulders at $0.2000; Is A Sell-Off Ahead?

Ripple price
Ripple price

Ripple price has enjoyed a bullish run in the past few trading days. However, technicals suggest that it may soon come to an end.

On the daily time frame, it can be seen that XRPUSD has retraced most of its gains back to the 38.2% Fib level (when you draw the Fibonacci retracement tool from the high of February 15 to the low of March 16). This price, which corresponds to the $0.2000 psychological handle, also coincides with the cryptocurrency’s previous lows.

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A closer look at the 4-hour time frame also supports this bearish bias. XRPUSD has recently formed lower highs after a series of higher highs. Consequently, a head and shoulders pattern has formed. This is widely considered as a bearish reversal pattern. As of this writing, XRPUSD is trading around its neckline support at $0.1830. A strong close below this price could be considered as a neckline break and trigger a sell-off on ripple price. Should this happen, the cryptocurrency could slide to $0.1300 where it found support in March.

On the other hand, if there are enough buyers to push ripple price above its recent highs at $0.1900, the head and shoulders pattern would be invalidated. It could suggest that ripple price may still have enough buyers to make a run for $0.2030 where it peaked in early April.

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