Connect with us

Hi, what are you looking for?

ELEVENEWS

Sin categoría

Ripple Price Analysis: XRP/USD Breaks Down From The Ascending Channel!

On May 30, the Ripple price (XRP) reached a high of $0.474. A rapid decrease began the next day and the price reached a low of $0.40. After a gradual increase, the price began another downward move.

Outlook

Will XRP stay above $0.4? Keep reading in order to find out.

Ripple Price (XRP): Trends and Highlights for June 4

  • The price of XRP reached a high on May 30.
  • It broke down from an ascending channel on Jun 4.
  • There is bearish divergence developing in the RSI and the MACD.
  • The price has made a possible double top pattern.
  • There is resistance near $0.45.
  • There is support near $0.37.

Ripple (XRP) in an Ascending Channel

The price of XRP is analyzed at one-hour intervals from May 30 to June 4 in order to trace the current pattern.
On May 30, XRP/USD reached a low of $0.40. A gradual increase began and the price reached a high of $0.44 on June 1. Since then, it has been trading inside the ascending channel outlined below:
Ascending Channel

The price broke down from the channel on Jun 4. The breakdown occurred with significant volume.

The Ripple (XRP) price briefly traded below $0.4 before rebounding.

Where will it go next? Let’s take a look at some technical indicators and try to answer.

Bearish Divergence

The price of XRP is analyzed at daily intervals alongside the RSI and the MACD
On May 15, the Ripple price (XRP) reached a high of $0.478. After a gradual decrease, similar highs were reached on May 30.

Double Top

In yesterday’s analysis, we stated that:

Both the RSI and the MACD reached the first high on May 15. However, they have both generated lower values since. This is known as bearish divergence and often precedes drops in price.

Furthermore, it seems as if the price has created a double top, which is a bearish reversal pattern.

The use of these indicators makes it likely that the price will decrease. In the short-term, a breakdown from the ascending channel is likely.

As seen above, the breakdown from the ascending channel already occurred. However, the double top pattern took close to 15 days to materialize. Therefore, it is likely that this is not the end of the downward move.

Reversal Areas

One support area and one resistance area is traced for Ripple (XRP) below.

XRP Resistance

The closest support area is found near $0.37. If the double top pattern proves to be correct, the Ripple price (XRP) will eventually reach this area. The analysis of technical indicators supports this claim.

The closest resistance area is found near $0.45. A significant increase against the current trend would be required for the price to reach this area. Currently, there are no technical signs pointing towards this scenario. However, if the current daily candle closes above $0.415, it would create a hammer, which is a bullish reversal candlestick.

Summary

To conclude, the Ripple price (XRP) recently broke down from an ascending channel. Furthermore, it has created a double top pattern in long-term timeframes.  This bearish reversal pattern, combined with the readings from technical indicators makes it likely that the price will decrease and eventually reach the support area outlined above.

*News Source*

You May Also Like

Ripple

Before we dive into to predicting the Ripple future and XRP price forecast, let’s quickly sum up what awaits you in this article: First,...

Cardano [ADA]

Just like it always does, crypto made another violent, strong move in the direction no one expected it and all coins gained back losses...

Ripple

American economist Jeffrey Tucker, who also works as the editorial director at the American Institute for Economic Research (AIES), called Ripple XRP “brilliant technology”...

Ripple

A new job opening at Ripple is revealing the company’s ambitions to build a trading platform connected to its XRP-powered cross-border payments solution, On-Demand...

Copyright © 2020 Elevenews