- Ripple price gives in to selling activities, breaks below trendline support.
- Peter Brandt says that if Ripple completes the H&S pattern, there is a possibility of the price hitting $0.20.
Ripple’s price trend this week continues to intimidate the bulls and investors. The snag at $0.3468 (2020 high) appears to have put an end to the bull rally that began in December last year. Several support areas have been shuttered including $0.32, $0.30 and $0.28. An attempt to recover the lost glory faced increased selling activity at $0.30 on Wednesday. The price is back to trading marginally above $0.27 after testing the key support at $0.26.
XRP/USD 4-hour chart
Ripple Price Dwindling Technical Picture
According to Peter Brandt, a commodity trading guru, if Ripple price completes a head-and-shoulders (H&S), there is a possibility that it will complete the lower leg towards $0.2071. Brandt, however, clarifies that his analysis is simply a possibility and not a prediction. H&S is a popular pattern in technical analysis; used to foretell possible reversals and most of the time marks the beginning of a downtrend. However, the pattern must be used alongside other technical indicators.
It will be interesting to see if this H&S top plays out. If so, the target would be .2071.
This Tweet poses a possibility. This is not a prediction. pic.twitter.com/IJiMR2AEnV
— Peter Brandt (@PeterLBrandt) February 20, 2020
Meanwhile, Ripple is trading at $0.27045 at the time of writing. The crypto has broken below the ascending trendline support. Based on the applied technical indicators such as the Relative Strength Index (RSI), XRP is not done with the downside. If the RSI dives into the oversold region, the price could penetrate the 50% Fibonacci resistance support as well as the key support at $0.26. A volume indicator clearly shows that bears are likely to hold the grip on XRP while longer.
Ripple Key Levels
Spot rate: $0.27045
Relative change: -0.00405
Percentage change: -1.5%
Resistance: $0.28, and $0.30.
Support: The 61.8% Fibo, $0.26 and $0.22.