Ripple Price Analysis: A break of this chart pattern could give us some great clues
- Ripple trades just above 1% higher on the session despite BTC rising over 5%.
- There is now an important chart pattern on the hourly chart to monitor.
XRP/USD 1-hour chart
Ripple trades higher on the session but is seriously lagging behind the digital gold that is bitcoin. There is now a chart pattern that has developed on the hourly chart below and a break of this pattern could help us determine the future path of XRP.
The pattern has a flat bottom which is now a support zone at 0.2079. If this level breaks the price could hit lower level and the next meaningful support lies at the psychological 0.20 level. On the topside, the price will need to break the patterns trendline to move higher and the next target would be the wave high of 0.2361.
The price is holding above the 200 and 55 moving averages but its position above the blue 55 EMA is looking slightly precarious. The RSI indicator is also looking weak as it broke below the 50 mid-line. The RSI does look like it might move up as if we draw a trendline from the two higher peaks it would show that it has now been broken.
Overall the trend is still an uptrend. The only thing that could change this is a break of the aforementioned support as this would make a lower high lower low wave pattern.
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Additional levels
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
