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Ripple (XRP) At Risk of Sharp Decline, As Double Top Pattern Emerges

Ripple (XRP) At Risk of Sharp Decline, As Double Top Pattern Emerges

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Ripple (XRP) At Risk of Sharp Decline, As Double Top Pattern Emerges

Ripple spiked higher and retested the key $0.2550 resistance area against the US Dollar. XRP price failed to break $0.2550 and it is now showing bearish signs below $0.2450.

  • Ripple failed to clear the $0.2550 resistance level and likely formed a double top against the US dollar.
  • The price is now trading well below the $0.2450 support and the 100 simple moving average (4-hours).
  • There is a key connecting bearish trend line forming with resistance near $0.2465 on the 4-hours chart of the XRP/USD pair (data source from Kraken).
  • The pair is likely to decline sharply if there is a close below $0.2400 and $0.2380.

Ripple Price is Likely Forming a Double Top Pattern

This week, we saw a recovery wave in bitcoin, Ethereum, and ripple. XRP price broke the $0.2450 and $0.2550 resistance levels. The price even spiked above the $0.2520 level and settled above the 100 simple moving average (4-hours).

However, the price failed to the last key barrier at $0.2550. It seems like a double top pattern is forming near the $0.2550 level. Ripple is now trading well below the $0.2450 support and the 100 simple moving average (4-hours).

There was a break below the 23.6% Fib retracement level of the upward move from the $0.2195 low to $0.2550 high. It seems like there is a key connecting bearish trend line forming with resistance near $0.2465 on the 4-hours chart of the XRP/USD pair.

Ripple Price

An initial support on the downside is near the $0.2400 level. The first major support is near the $0.2380 level (the recent breakout zone). It is close to the 50% Fib retracement level of the upward move from the $0.2195 low to $0.2550 high.

If there is a clear break below the $0.2380 support, the bears are likely to gain strength. The next key support is near the $0.2300 level, below which the bears are likely to aim a retest of $0.2200.

Fresh Increase in XRP?

If ripple stays above the $0.2400 and $0.2380 support levels, it could attempt a fresh increase. An initial resistance on the upside is near the $0.2450 level and the highlighted bearish trend line.

To move into a positive zone and extend its rise, the price must surpass the $0.2550 resistance level. The next key barrier for the bulls could be near $0.2620.

Technical Indicators

4-Hours MACD – The MACD for XRP/USD is slowly gaining pace in the bearish zone.

4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is now just below the 50 level.

Major Support Levels – $0.2400, $0.2380 and $0.2300.

Major Resistance Levels – $0.2450, $0.2465 and $0.2550.

Published at Tue, 29 Sep 2020 07:48:37 +0000

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