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.
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.
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.