Ripple Price Analysis
Remember the rising trend line I pointed out on ripple price yesterday? There were not enough buyers on XRPUSD to keep it trading above $0.2400. Instead, ripple price fell below trend line support. A closer look at the hourly chart would show that the cryptocurrency has made lower highs to succeed the series of higher highs that it made. A head and shoulders chart pattern has now become apparent.
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In forex trading, this chart pattern is considered as a bearish indicator. The market’s failure to sustain making higher highs suggests that the momentum may now have shifted to the sellers’ side. A break of neckline support is often considered as a trigger that a sell-off would soon ensue.
As of this writing, ripple price is trading below neckline support around $0.2330. This could suggest that XRPUSD may fall soon. The cryptocurrency could slide to support around $0.2180 where it bottomed on January 26. However, reversal candles around the neckline could suggest that buyers are still in control. A rally to the recent highs of XRPUSD just above $0.2400 would invalidate the head and shoulders chart pattern. It could even suggest that ripple price may soon rally to $0.2500.
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