XRP/USD Bulls Knock on $0.3 But A Flag Pattern Reversal Is Almost Certain

Published October 14, 2019 | Updated October 14, 2019

XRP

XRP/USD Bulls Knock on $0.3 But A Flag Pattern Reversal Is Almost Certain

  • Ripple spikes incredibly but hits a snag ashy of $0.30 leaving room for a reversal.
  • The viable support at 0.25 and $0.24 remain vulnerable as long as the bearish flag pattern is in action.

Ripple is the biggest single-digit gainer among the major cryptocurrencies. While most of the digital assets are settling for consolidation following the recent slump, Ripple engaged the throttle pushing the price north towards the critical $0.3. XRP/USD is up a whopping 5% on the day after opening the session on Monday at $0.2777. The price action has bullishly ascended to levels around $0.2935 (intraday highs).

Looking at the four-hour chart, Ripple is pushing against odds within an upward trending channel. The channel has been tested several times on either side. I would like to think of it as an extended bearish channel. In other words, a reaction to this flag pattern will continue with XRP’s previous downtrend motion that saw it test levels close to $0.20.

XRP/USD 4-hour chart

XRP/USD price chart
XRP/USD price chart by Tradingview

Meanwhile, before the reversal occurs, Ripple is in a bullish zone above $0.28. It is trading at $0.288 with the immediate upside limited at the 61.8% Fib retracement level taken between the last swing high of $0.3274 and the swing low of $0.2281.

A weak bearish trend is forming owing to the fact that the Relative Strength Index (RSI) is retreating after hitting slightly oversold conditions. With the 100 Exponential Moving Average (EMA) cross above the 100 Simple Moving Average (SMA), Ripple is likely to a higher consolidation. Moreover, in the event declines hit below the flag pattern the 100 EMA will offer support as well as the 100 SMA.

Other key support areas to look out for incluse the 38.2% Fib level, $0.25 close to the 23.6% Fib level, $0.24 and $0.22.

Ripple Key Technical Levels

Spot rate: $0.2879

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Relative change: +0.012671

Trend: Bearish

Percentage change: 5%

Support: 38.2% Fib level, $0.25 and $0.22.

Resistance: 61.8% Fib level, $0.3 and $0.32.

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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John Isige 1051 Articles
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