Ripple’s remarkable 291% rally in November in jeopardy as the chart prints this critical bearish pattern
- Ripple’s recovery hits a barrier at $0.7, giving way to an ongoing retreat.
- XRP/USD seems poised for a massive breakdown likely to retest support at the 100 SMA.
Ripple soared massively in November, becoming one of the strongest cryptocurrencies in terms of rebound. The flash rise to $0.92 brought to light the possibility of XRP hitting $1 before 2020 ends. Meanwhile, a bearish pattern, forming on the 4-hour chart suggests that the bullish narrative might not hold, at least not for long.
At the time of writing, XRP/USD is trading at $0.65 amid a developing bearish momentum. Its upside is limited by the seller congestion at $0.7. The Relative Strength Index has started to reflect the ongoing retreat.
It is essential that buyers hold above the immediate support at $0.65 to sustain the uptrend. However, the formation of an ascending wedge pattern on the 4-hour chart hints at a possible reversal.
XRP/USD 4-hour chart
Ascending wedge patterns are characterized by dropping buying volume following a lengthy bullish period. One trendline is drawn connecting a series of higher highs while another links a series of higher lows. A breakdown usually occurs before the trendline converge.
Therefore, it critical to proceed with caution when dealing with XRP. Note that Trading under the wedge might trigger massive losses that could overshoot the 50 Simple Moving Average support at $0.6. On the downside, the next tentative support is the 100 SMA at $0.45 (last week’s key anchor zone).
It is worth mentioning that the bearish notion will lose credibility if the cross-border token holds above $0.65 and perhaps rises above the upper trendline. Price action above $0.7 might also call for more buy orders, in turn, pulling XRP to $1.
XRP intraday levels
Spot rate: $0.65
Relative change: -0.01
Percentage change: -1.5%
Trend: Bearish
Volatility: Low
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