• 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.


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

US presidential election outcome could shape the future of crypto

US presidential election outcome could shape the future of crypto

US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).

More Cryptocurrencies News
Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.

More Bitcoin News
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.

More Ripple News
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.

More Ethereum News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP