Buyers may return from $0.2000 area

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Ripple came under heavy downside pressure last week as the broader cryptocurrency market relinquished a portion of its recent gains.

Ripple technical analysis  shows that dip-buyers may start to enter back into the XRP/USD long trade from the $0.2000 level. 

Ripple medium-term price trend

Ripple technical analysis shows that the cryptocurrency is coming under increasing downside pressure after slipping below the pivotal $0.2350 level. 

The recent decline in XRP/USD has lacked downside momentum and volume, hinting that the pullback may be a minor technical correction. 

Caution is still advised, as the cryptocurrency trades below its 200-day moving average, and is still technically bearish. Furthermore, XRP/USD rallies have been aggressively sold over recent months.

The daily time frame shows that a large reversal pattern may be taking shape. However, further technical confirmation is still needed at this stage.

With all these factors in mind, the trading action around the psychological $0.2000 level should prove pivotal this week.

Ripple short-term price trend

Ripple technical analysis over the short term shows that the cryptocurrency has turned bearish over the short term for the first time since January 10.

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Despite losing its short-term positive bias, the XRP/USD pair still appears reasonably bullish when viewing the cryptocurrency from the lower time frames.

Ripple technical analysis

A large reversal pattern has taken shape across the four-hour time frame, which holds upside potential of around $0.0600.

The neckline of a bullish inverted head-and-shoulders pattern on the four-hour time frame, located around the $0.2350 level, remains a key trigger point to watch this week.

Key technical support for the XRP/USD pair is currently located around the $0.1900 and $0.1750 level.

Should we see a reversal in XRP/USD pair back above the $0.2350 level this week, watch out for a potential rally towards the $0.3000 level. 

Ripple technical summary

Ripple analysis indicates a potential decline towards the $0.2000 level this week.

Watch out for a recovery back above the $0.2350 level, as it could prompt the next rally in the cryptocurrency.

Trade Ripple to US Dollar – XRP/USD CFD

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