25 C
Canada
October 16, 2019
Image default
price analysis ripple

Technical Analysis and Market Entry: XRP/USD Heading for Critical Trend-Defining Retest of Breached Triangular Formation

XRP/USD: Recent Price Behavior

Ripple’s XRP staged a large rebound throughout Tuesday and Wednesday, but failed to further capitalize with follow-through on Thursday at the time of writing. XRP/USD jumped some 25% over the two days, hitting the highest level seen for six weeks. The bulls pushed the price into the significant psychological $0.3000 territory, which proved once again to be unsustainable.

Sellers have moved in quickly to pile the pressure on XRP, seen down some 7% on Thursday. The price action has been very non-committal, as the price has been narrowing within a triangular structure formation. It was perceived to be a bearish pennant pattern, which was subject to a breakout south. However, bulls managed to defy the odds of the setup, forcing a breach and daily closure above.

XRP/USD daily chart.

Retest or Failure?

As detailed above, the price escaped the confinements of a bearish pennant, which had invited a strong wave of buying pressure. The loss of upside momentum is forcing the price to head down for a retest. In terms of the upper acting trend line of the pattern, that will be sought at as potential support, tracking at $0.2530. Should the retest hold via the daily, this could prove to be encouraging for another attempt at a move north. It would complete a technical pattern of behavior of breaking out and retesting, making way for a continued bull run.

Should the noted retest fail to hold, then a strong invite of selling pressure could likely be seen. A breach back below of the noted pennant could see another retest of $0.2500, which has been heavily defended of late by the buyers. The support in and around the noted round figure plays a vital role in protecting XRP from slipping down at $0.2000. It is important to note that XRP/USD has not traded below the zone of $0.2500-$0.2000 since November 2018.

Trade Recommendation

Once the price has completed the current pullback and successfully retests the pennant, then further upside will be eyed. An entry following the daily retest around $0.2550 would be viable, with upside targets at $0.3000, $0.3700 and then $0.4000. Stops would be placed just below the pattern, $0.2250, which is also underneath an area of demand,

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Related posts

Stellar Lumens (XLM) Hits Two-Week High, Overtaking Litecoin in Market Cap

admin

Cardano Price Analysis: ADA Propped Up on Announcement Optimism

admin

NEM Price Analysis: XEM Remains Under Heavy Selling Pressure; NEM Foundation Tries to Ease Concerns

admin

2 comments

Abu September 21, 2019 at 4:16 pm

Hello
Is there any hope to return back the price over 3.5$

Reply
sodium bicarbonate September 21, 2019 at 9:51 pm

Now I am going away to do my breakfast, later than having my breakfast coming over again to
read other news.

Reply

Leave a Comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy