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