The upside move in Ripple price seems to have stalled, even as Bitcoin prices hit resistance on the BTCUSD chart. This pattern continues to confirm the correlation that Ripple price on the XRPUSD has with the BTCUSD pair. Ripple price is currently trading at $0.19777 after hitting the resistance zone identified on the daily chart.
In the meantime, Whale Alert is reporting in a tweet that 63,704,590 XRP has been transferred from Ripple Labs to its former CTO Jeb McCaleb. This amount is worth nearly $12.3 million, and Whale Alert speculates that this amount of Ripple will probably make its way into the market for sale. Such a colossal sale would increase the supply of XRP and depress Ripple price in the short term.
Let us see how this would play into the technical setups identified on the daily chart of XRPUSD.
Download our Q2 Market Global Market Outlook
Technical Outlook for XRPUSD
Ripple price as mirrored on the XRPUSD chart shows that the daily candle has run into resistance at the zone demarcated with the red rectangle on the daily chart. The previous daily candle hit resistance there as well. Ripple price action from March 13, 2020, to date shows that the candles have consolidated within the rising wedge pattern, with current prices now at the top end of the wedge, where this pattern blends with the resistance zone.
If indeed the XRP tokens said to have been sent to the former CTO of Ripple will indeed be sold, this news coupled with the technical setup would provide both a fundamental and technical basis for Ripple price to retreat in the short term. A price retreat would target the 0.17801 but would require a breakdown of the wedge pattern. This breakdown would have to be confirmed by a double successive candle penetration close below the lower border of the wedge. 0.16504 would also be a potential target as the breakdown move targets the price projection, which would probably leave the lows of 17th and 18th March 2020 (0.1400) as the likely target that completes the measured move.
On the flip side, an extension of the upside on Ripple price would have to follow a break of the 7200 price level on the BTCUSD in a correlated move. Such a move would have to achieve a 1% penetration close above the resistance zone, thus invalidating the wedge pattern. This move would open the door towards the next resistance zone, which has 0.22329 as the price floor.
Don’t miss a beat! Follow us on Telegram and Twitter.
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Eno on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.