Ripple Price Analysis: Why XRP/USD breakdown to $0.17 looms?
|- Ripple price recovery stalls at $0.2050 opening the Pandora box as sellers rush in for revenge.
- The formation of a rising wedge pattern could sabotage the gains accrued this week.
Ripple has been one of the best-performing cryptocurrency in the last 48 hours. The fourth-largest cryptocurrency embarked on a recovery mission following the establishment of support at $0.17. The significant and tactical breakout occurred after the price stepped above the moving averages. The upward roll was impressive enough to hit levels above $0.20 for the first time in weeks.
However, the formation of a rising wedge pattern puts all the progress made this week in jeopardy. This pattern is used in technical analysis to signal a possible trend reversal following an extended bullish action. In this case, if the price reacts to the pattern, investors can expect XRP/USD to plummet towards the main support at $0.17 before another bigger upward action comes into play.
On the other hand, buyers have a task to establish support above $0.20. This will most likely spare the investors from another rollercoaster ride. From a different technical perspective, support above $0.20 is possible. Looking at the RSI, a bounce above $0.20 is likely in the near term. The indicator has embraced support at the midline and is currently pointing upwards.
The MACD, however, puts emphasis on the possibility of a reversal towards $0.17. For this reason, buyers must be aware of the looming danger of declines. The focus at the moment should be channeled towards defending support at $0.20 and pulling Ripple above $0.21 near term hurdle.
XRP/USD 1-hour chart
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