Ripple market update: XRP/USD reaction to a double-top pattern refreshes $0.4 support
|- XRP/USD has bounced off the key support at $0.4000 and is currently trading at $0.4200.
- Ripple bulls have the power to not only defend $0.400 support but also pull the price to higher levels.
Ripple is calm following a stormy Thursday evening (GMT) when the price dipped extensively from a high around $0.4748 to lows just above $0.4000. Prior to the declines, XRP/USD had embarked on a journey of reversing the trend towards the short-term target at $0.50. Ripple had also found support in a range between $0.3600 - $0.3800 (buyer congestions zone).
The upward movements corrected above the 50 Simple Moving Average (SMA) 1-hour and the 100 SMA 1-hour. There was a struggle at $0.4400 but the bulls managed to pull XRP above $0.46 paving the way for more gains to the weekly high at $0.4748.
The formation of a double-top pattern between in an up trending market is usually a bearish signal. Reaction to the pattern cemented the bears' dominance on the market leading to a correction below the moving averages. On a positive note, XRP/USD has bounced off the key support at $0.4000 and is currently trading at $0.4200 amid a developing bullish momentum.
The initial resistance is the 100 SMA while $0.4400 will hinder growth as well. However, correction past this level will open the door for gains above $0.4600 and eventually we could see XRP testing $0.5000. At the moment the bulls have the power to not only defend $0.400 support but also pull the price to higher levels.
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