Just like other cryptocurrencies, ripple price aggressively sold off this past trading week as risk aversion stemming from coronavirus fears dominated market sentiment. The head and shoulders chart pattern played out nicely and it did not take long for XRPUSD to erase its gains after it broke the neckline support. As of this writing, the cryptocurrency is trading below the 100 SMA and 200 SMA around 0.2280.
Read our Best Trading Ideas for 2020.
A closer look at the hourly time frame shows that ripple price is testing resistance at the falling trend line from connecting the highs of February 25 and February 26. If there are enough sellers in the market, the trend line could continue to hold. Ripple price may then continue its downtrend to near-term support around $0.1880 where it bottomed on January 2.
On the other hand, if sellers run out of steam, we could see an uptick on XRPUSD. A bullish close aboves yesterday’s New York session highs around $0.2380 would effectively break resistance at the falling trend line. It could be a sign that ripple price may soon trade higher. If this turns out to be the case, XRPUSD may soon trade higher to resistance around $0.2850 where the cryptocurrency topped on February 23.
Don’t miss a beat! Follow us on Telegram and Twitter.
More content
- Follow me on Twitter.
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.