Ripple Price Analysis: XRP/USD bearish pennant pattern targets $0.16
|- Ripple price climbs above $0.18 hurdle amid risks of a pennant pattern reversal.
- XRP/USD short term outlook has a bullish bias but the danger of another breakdown still looms.
The cryptocurrency market has kicked off the week with the majority of the digital assets in the green. Ripple price is trading 0.6% higher on the day after opening the session at $0.1795 and advancing upwards to $0.1805. Bitcoin and Ethereum have added 0.71% and 0.48% to their values respectively.
The prevailing technical picture has a bullish bias. Buyers are doing their best to turn $0.18 into a support area. However, selling influence cannot be ignored especially with the 200 SMA in the 4-hour range maintaining position above the short term 50 SMA.
According to the RSI, XRP/USD could settle in consolidation. The sideways action is also supported by the MACD’s horizontal movement above the mean line.
In spite of the short term bullish bias, a formed bearish pennant pattern suggests that Ripple is note done exploring the rabbit hole. To avert another freefall, buyers will have to defend the 50 SMA support as well as the pattern’s support. Moreover, a jump above $0.20 resistance would be a good way to encourage more buyers to enter the market.
XRP/USD 4-hour chart
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