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.
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.