Here’s How This Bearish Pattern May Influence XRP’s Near Future Price
The ongoing sideways trend in XRP price has shaped into a head and shoulder pattern. The altcoin has been working on this pattern for nearly six months, preparing for a potential downfall. In theory, the bearish pattern signals the failure of buyers to rebound higher from a particular support (neckline) which eventually resumes a directional downfall.
Key points:
- A head and shoulder pattern governs the XRP price’s sideways trend
- A bullish breakout from $0.411 will undermine this bearish pattern
- The intraday trading volume in the XRP price is $1.05 Billion, indicating a 125% gain.
Source- Tradingview
Despite the ongoing uncertainty in the crypto market, the XRP coin witnessed a significant inflow on December 26th, which pushed its prices to a local resistance of $0.373. Today, the price tried to break above the mentioned barrier but couldn’t sustain the high ground.
By the press time, the XRP price trades at the $0.368 mark and shows indecisiveness among market participants with a Doji candle. This candle pattern, backed by decreased volume, indicates a higher possibility of price reversal.
Thus, this potential downfall may drop the XRP coin 15% down to challenge the neckline support of the H&S pattern, i.e., $0.32-$0.31. This multi-month support level has supported this altcoin for the past six months and losing it will cause a deeper correction and plunge the prices to $0.26.
On a contrary note, a bullish breakout from the $0.382 overhead barrier will weaken the bearish thesis and encourage a price rally to 12% higher to $0.41.
Technical Indicator
MACD: The multiple crossovers between the MACD and signal line accentuates the ongoing uncertainty in the crypto market. However, both these slopes wavering below the neutral line indicates the poses an upper hand.
Average Directional Movement Index: the ADX slope shows an evident rise to the recent downfall in XRP price, highlighting an overall downtrend in XRP.
XRP intraday price levels
- Spot price: $0.36
- Trend: Bearish
- Volatility: High
- Resistance level- $0.373 and $0.41
- Support level- $0.31 and 0.26
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