Ripple Price: Neckline Support in Focus – XRP/USD Forecast
XRP/USD Price Technical Outlook
- XRP/USD develops a reversal pattern
- Key levels and signals to monitor
XRP/USD – Losing Steam
On April 30, Ripple rallied to a near eight-week high at $0.236. However, the price declined after reflecting that bulls were losing momentum. This led the market to close last week candlestick in the red with a 10.8% loss.
Alongside this, the Relative Strength Index (RSI) remained flat around 50 highlighting weak bulls and weaker bears.
Ripple PRICE DAILY CHART (MAR 15, 2019 – May 20, 2020) Zoomed Out
Ripple PRICE DAILY CHART (March 12 – May 20, 2020) Zoomed In
Based on the daily chart analysis, on May 10 the market reversed higher before testing the low end of the current trading zone $0.175 - $0.247. Later on, the price closed above the 50-day moving average and generated a bullish signal.
A close above the high end of the aforementioned trading zone means a stronger bullish sentiment and may trigger a rally towards $0.280. A further close above this level could extend this rally towards $0.312. That said, the weekly resistance levels underlined on the chart (zoomed in) should be considered.
It’s worth noting that, currently Ripple develops a head and shoulders pattern. Any violation of the neckline residing at $0.184 would be considered a bearish signal. Another bearish signal would be generated if XRP/USD closes below the low end of the current trading zone. In that scenario, the price may fall to $0.100. Yet, the weekly support levels marked on the chart should be kept in focus.
Ripple PRICE FOUR Hour CHART (April 16 – May 20, 2020)
From at the four-hour chart, we notice the price eyes a test of the downtrend line originated from the April 30 high at $0.236. Any break above this line could be considered a bullish signal.
A break above $0.224 would be considered an additional bullish signal and may cause a rally towards the high end of the current trading zone discussed above on the daily chart. Although, the weekly resistance level underscored on the chart should be monitored. In turn, any break in the other direction i.e. below $0.193 could send XPR/USD towards $0.178. Nonetheless, the daily support level printed on the chart should be watched closely.
See the chart to know more about the critical levels in a further bearish/ bullish move.
Written By: Mahmoud Alkudsi,Market Analyst
Please feel free to contact me on Twitter: @Malkudsi
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.