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

XRP/USD price chart by Tradingview

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Ethereum price bullish reversal sets ETH on a return to $3,820

Ethereum price is forming a bullish chart pattern that projects a 12% bounce toward $3,820. Only a slice above $3,398 would validate the optimistic forecast. A stiff hurdle may emerge at the 78.6% Fibonacci retracement level at $3,709.

More Ethereum news

Cardano price presents buy opportunity before ADA gears up for 40% ascent

Cardano price could tag lower levels before ADA bulls prepare to reverse the period of underperformance. The Ethereum killer could slide toward the January 10 low at $1.07 before falling toward the lower boundary of the prevailing chart pattern at $1.04.

More Cardano news

Algorand price due for a 25% upswing as ALGO reveals a bullish setup

Algorand price has seen a considerable drop over the past 24 hours and shows that this bearish outlook might be coming to an end. As ALGO finds its footing at the current support level, investors can position themselves to maximize the gains that will follow.

More Algorand news

Chainlink must return above this price level or LINK will fall back to $20

Chainlink price is facing difficulties moving above a significant resistance zone on the weekly chart. Failure to close above this resistance on the weekly chart could trigger a strong resumption of falling prices. Chainlink price behavior  for the remainder of Jan will likely be decided this Friday.

More ChainLink news

BTC eyes retest of $50,000

Bitcoin price shows a resurgence of retail interest as it bounced off a crucial psychological level. The recent uptrend is preparing a base on a short-term time frame so BTC can kick-start a larger leg-up. Interestingly, on-chain metrics are lining up with the bullish outlook portrayed from a technical perspective. An uptrend now seems inevitable for BTC and, therefore, the larger ecosystem.

Read full analysis