Ripple Technical Report: Path of least resistance appears to the downside for XRP/USD
- Ripple consolidates after Friday’s drop.
- Rangebound amid a potential symmetrical triangle on hourly chart.
- Bearish bias likely amid a stack healthy resistance levels.
Ripple (XRP/USD) is struggling to extend its recovery momentum beyond 0.20 on Saturday, as the bulls remain in a wait-and-see for the fourth straight session. While extending the range play, the bears are seen fighting back control, as suggested by the near-term technical set up. The fourth-most favorite cryptocurrency posts minor losses around 0.2025 but remains on track to book about 2% weekly loss. Its market capitalization stands at $8.95 billion.
Short-term technical outlook
As observed on the hourly chart, the No.4 is fluctuating between gains and losses within a symmetrical triangle pattern, with a break in either direction due on the cards. Looking at the setup, however, the downside appears more compelling, as a bunch of health resistance levels continues to guard the upside.
Therefore, a test of rising trendline support at 0.2017 could be tested should the sellers take over control. A breach of the latter would confirm a triangle breakdown, with the pattern target of 0.1945 on the bears’ radar.
To the upside, strong resistance is located at 0.2038, where the horizontal 200 and 50-hourly Simple Moving Averages (HMA) intersect. Should the bulls manage to take out the aforesaid barrier, the next hurdle is seen at 0.2044, the confluence of the falling trendline resistance and bearish 100-HMA
At the moment, the hourly Relative Strength Index (RSI) has turned slightly below the midline (50.0), backing the case for the downside.
XRP/USD 1-hour chart
XRP/USD key levels to consider
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
