Ripple Price Analysis: XRP sellers eye confirmation of double top on 4H
- XRP/USD drops below 200-bar EMA after forming double tops around 0.3700.
- Sellers await confirmation of bearish chart pattern, two-week-old support line adds to the downside filters.
Having failed to cross Friday’s high around 0.3700, XRP/USD drops to 0.3045 during early Monday’s trading. In doing so, the quote portrays a bearish “double top” chart pattern on the four-hour (4H) chart.
With the downward sloping RSI and bearish MACD, coupled with the failures to clear immediate upside hurdles, XRP/USD is likely to remain pressured.
However, fresh selling should wait for the clear downside break of horizontal support around 0.2840. Also acting as short-term key support is the rising trend line from December 29, at 0.2520 now.
Meanwhile, corrective pullback beyond 0.3700 will be considered afresh invitation to XRP/USD bulls targeting the mid-December 2020 low near 0.4375.
In a case where the XRP/USD buyers manage to cross 0.4375, their run-up to challenge May 2018 high, probed in November 2020 can’t be ruled out.
To sum up, the XRP/USD prices are witnessing fresh selling pressure but the hopes of a recovery moves to trim late-December 2020 losses haven’t faded yet.
XRP/USD four-hour chart
trend: Further weakness expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
