• 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 Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Why Polygon’s MATIC bulls could be too eager and drop the ball on this rally

Why Polygon’s MATIC bulls could be too eager and drop the ball on this rally

Polygon (MATIC) price action has been on treading nervously this week, with weekly earnings switching back and forth between profit and loss. It all comes down to trading this Friday to see if bulls can eke out a winning week.

More Polygon News

How can traders squeeze in more gains as Shiba Inu price teases a 42% rally

How can traders squeeze in more gains as Shiba Inu price teases a 42% rally

Shiba Inu price positively reacted to the United States inflation report, forming a bullish candle on its daily chart. The second-largest meme coin brushed shoulders with $0.00001287 but pulled back to test support highlighted by the 100-day Simple Moving Average (SMA) at $0.00001170.

More Shiba Inu News

CRO price sees bulls using their last ammunition to attack $0.16

CRO price sees bulls using their last ammunition to attack $0.16

Crypto.com Coin (CRO) price action is looking to execute a bullish breakout above $0.16. Ignorant bulls will try to be part of that rally, but that could prove a big mistake as a few risks need to be taken into account to be sure that this rally still has legs.

More Crypto.com News

Solana traders’ focus on $58 as the rally starts to slow down

Solana traders’ focus on $58 as the rally starts to slow down

Solana (SOL) price action is set to close out the week with a mere 7% gain depending on where it ends  Friday evening after the US closing bell. Overall it has been a good trading week from a fundamental perspective and technicals in a supporting role.

More Solana News

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis

BTC

ETH

XRP