Ripple [XRP] Price Analysis: Was This Retracement Necessary? Flag Pattern Breakout Looms

XRP
Source: TradingView

Ripple [XRP] Price Analysis: Was This Retracement Necessary? Flag Pattern Breakout Looms

  • XRP initially found support at $0.38 following the correction during from the mid-May surge.
  • The formation of a short-term bullish flag pattern hints a breakout in the near-term.

After reacting to a double-top pattern, XRP/USD corrected lower as expected. The formation of this pattern usually hints a reversal when it occurs in the middle of an up trending market that is losing momentum. XRP initially found support at $0.38 following the correction during from the mid-May surge.

XRP/USD 4-hour chart

XRP price analysis
Chart source: Tradingview

Both the 100 exponential moving average (EMA) and the 200 EMA 4-hour have been supporting the price in the last three weeks. If the price continues to stay above the EMAs, there is a high chance that XRP will reverse the trend higher towards the critical $0.50. The last week of May saw the price correct towards the same level but the formation of the double-top pattern has resulted in a slide that has found support at $0.4000.

Meanwhile, the formation of a short-term bullish flag pattern hints a breakout in the near-term. This will, however, require that the price corrects above $0.4600 resistance (seller congestion zone), in turn, encouraging more buying entries. The increasing buying influence could send the price above $0.50 and pave the way for a further correction towards $0.60.

Looking at the chart, the MCAD continues to sit in the positive. The slight divergence means that the bears are likely to continue gaining traction. A break below the above-mentioned bullish flag pattern could result in further breakdown towards $0.4000.

As far as support is concerned, XRP/USD initial support is observed at $0.4200, the EMA200, $0.4000 and EMA100.

Ripple Key Technical Indicators

Bull Flag pattern: Impending breakout could touch $0.50 critical level.

EMA100 4-hour: $0.3869

EMA 200 4-hour: $0.4122

MACD 4-hour: +0.0052

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Ripple [XRP] Price Analysis: Was This Retracement Necessary? Flag Pattern Breakout Looms
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Ripple [XRP] Price Analysis: Was This Retracement Necessary? Flag Pattern Breakout Looms
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XRP initially found support at $0.38 following the correction during from the mid-May surge. The formation of a short-term bullish flag pattern hints a breakout in the near-term.
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John Isige 96 Articles

John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Follow him on Twitter at @jjisige

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John Isige 96 Articles

John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Follow him on Twitter at @jjisige

Follow John @