- Ripple recovered towards $0.4 but has been rejected due to the formation of a double-top pattern.
- The cross-border transfer token is banking on support at $0.30 to secure the uptrend and avoid a price dip to $0.25.
Ripple is attempting to redeem itself after the multiple lawsuits it was forced to endure towards the end of 2020. The final price dip to $0.17 saw bulls come back from hibernation to defend their fort.
The bulls’ efforts were rewarded by a spike above $0.2, but the upside remained limited under $0.25. Consolidation took precedence in the first week of January, giving way to a commendable breakout above $0.3.
XRP/USD restored its position above the 50 Simple Moving Average and the 100 SMA on the 4-hour chart. This encouraged more buyers to join the market, perhaps due to the general uptrend in the market as Bitcoin approached $40,000 for the first time in history.
The cross-border token came close to trading at $0.4 but was rejected due to the formation of a double-top pattern. This is an extremely bearish technical reversal pattern that comes into the picture after an asset hits a high price point a couple of times. Note that there is usually a moderate price drop between the peaks.
XRP/USD 4-hour chart
At the time of writing, XRP is doddering at $0.32 amid a growing bearish grip. Support is envisaged at $0.30. Closing the day above this level will not scare away the bulls and investors daring to join in the troubled token market. Besides, this support might call for more buy orders, thus securing the uptrend targeting highs above $0.4.
On the other hand, a daily close under $0.3 could trigger more sell orders as investors throw in the towel to concentrate on other better-performing tokens. Meanwhile, lower buyer congestion is anticipated at the 100 SMA, $0.25, and the 50 SMA.
Ripple intraday levels
Spot rate: $0.32
Relative change: -0.002
Percentage change: -0.76