• XRP price triggers bullish hammer candlestick pattern on the daily chart, but follow-through interrupted by the heavy market.
  • Price supported by the convergence of the neckline of a multi-year head-and-shoulders pattern with the November 2020 high.
  • Ripple below-average volume indicates no mass exodus despite the dull price structure.

XRP price remains reluctant despite the bullish hammer trigger on the daily chart. For now, Ripple continues to be influenced by the broader cryptocurrency market vibrations than anything specific to the digital asset. As long as XRP price remains locked in a price range defined by the psychologically important $1 and $0.760, investors should target swing trade opportunities and keep one eye on the bigger picture.

XRP price enthusiasm nullified by the indifference in the crypto complex 

Since the May 23 low at the 200-day simple moving average (SMA), Ripple has defended a critical price range. The level corresponds to the union of the November 2020 high at $0.780 with the neckline of a multi-year inverse head-and-shoulders pattern at $0.760.

The neckline runs from the September 2018 high of $0.791 through the November 2020 high of $0.780. The inverse head-and-shoulders pattern was triggered on April 5 with an explosive 44% gain. Since that time, the neckline has held on a weekly closing basis, as highlighted in the chart below. Moreover, the chart highlights how important $1 has been on a weekly closing basis over the last three weeks.

XRP/USD weekly chart

Today, the trigger of the bullish hammer candlestick pattern has not inspired XRP price to rally to the structurally significant $1. Still, the bias of the daily chart points to a renewal of the hammer breakout, representing a 15% gain from the current price.

As $1 is instructive for price action, a daily close above the level could stimulate XRP price to challenge the confluence of the 38.2% Fibonacci retracement of the April-May decline at $1.153 with the declining 50-day SMA at $1.205, yielding an approximate gain of 37% from the current price.

To generate a break out above $1, Ripple will need a renewal of commitment and emotion of investors in the cryptocurrency, or XRP price will be returned to the governing price range mentioned above.

XRP/USD daily chart

XRP/USD daily chart

A failure to hold the $0.760-$0.780 price range should be met with notable support at the 200-day SMA at $0.718. If the cryptocurrency complex suffers a new wave of selling, XRP could sweep below the May 23 low at $0.652. A close below the low would motivate a reevaluation of the longer-term outlook for Ripple and leave the international settlements token vulnerable to a test of the 40-week SMA at $0.588. 

The dark cloud of the Ripple and SEC legal tussle is worth considering in any XRP price evaluation. Still, the bullish fundamental story is equally engaging, posing a shifting challenge for investors. Fortunately, the clarity of the price structure on two timeframes, with explicit support and resistance levels, affords a mechanical approach to seizing trading opportunities or extending trade durations instead of relying on subjective conclusions on the principal fundamental developments.

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

Solana price eyes a return to $120 as confidence in SOL fades

Solana price continues to face some strong technically and fundamentally bearish scenarios. In addition, concerns about Solana’s network stability and scalability remain. Those concerns continue to weigh in on the bearish price action ahead.

More Solana news

MATIC on the march to $3 but must hold this support zone or face strong selling pressure

MATIC price action has fallen below the rising wedge for the second time in January; the first occurrence was on January 8. The Kijun-Sen is the final support zone, and if it fails, MATIC could drop 20%. The recent fundamentals are bullish.

More Polygon news

Top 3 Price Prediction: Crypto market seems ready to rally

Bitcoin price continues to sit on top of the neckline of a head-and-shoulders pattern, generating anxiety amongst bulls and bears alike. Ethereum price is testing the daily Tenkan-Sen as a support zone that could turn into a higher low.

More Bitcoin news

Dogecoin liquidity deepens as DOGE goes live on Thorchain

Thorchain announced earlier today that the Dogecoin liquidity pool is live on the decentralized liquidity network. As on-chain activity would increase, the deep liquidity fuels a bullish narrative for Dogecoin price. 

More Dogecoin 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