Ripple price seems to have steadied after an extensive drop in the past couple of weeks. Could we soon see a reversal on XRPUSD or is the market just stalling for another big fall?
The 4-hour time frame showcases a bearish chart pattern. XRPUSD has been making lower highs and higher lows since falling on March 12. This price action has consequently allowed for a bearish pennant to form. In forex trading, this chart pattern is considered as a bearish continuation pattern. A break of the low for March 14 at $0.1430 could trigger a sell-off to last week’s lows at $0.1140. If support at that level does not hold, the next floor could be at $0.03000 where the cryptocurrency found support on April 2017.
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On the other hand, it’s worth pointing out that ripple price has room to move higher and still maintain its downtrend. By connecting the highs of March 7 and March 12, we can see that trend line resistance falls around $0.1780. When drawing the Fibonacci retracement tool from the high of March 10 to the low of March 13, it can be seen that the 61.8% Fib level coincides with this price too.
A bullish break above the high of March 15 at $0.1646 would mean that there are buyers in the market. They may soon push price higher to the confluence of resistance at $0.1780. If resistance here does not hold, it may even go higher to last week’s high at $0.2160.
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