Remember the inverse head and shoulders pattern I pointed out on the daily chart of ripple price yesterday? There were enough buyers to push price beyond the neckline resistance around the $0.2600 handle. As of this writing, XRPUSD is trading above $0.2700. If buyers can sustain their rally in this week’s trading, the next resistance level is above $0.3100 where ripple price peaked on September to November 2019.
Read our Best Trading Ideas for 2020.
On the other hand, if sellers take charge, we could see XRPUSD pull back some of its gains. By connecting the lows of February 2 and February 4, we can see that there is trend line support around $0.2550. This price also aligns with the 61.8% Fib level when you draw the Fibonacci retracement tool from the low of February 4 to today’s high. Reversal candles around this level could suggest that the rally to $0.3100 on ripple price is still intact. Watch out for dojis and hammers around this level.
On the other hand, be wary of a strong bearish candle closing below the rising trend line. It could suggest that the short-term uptrend on XRPUSD has been invalidated. Ripple price may then fall to $0.2350 where it previously found support.
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.