• XRP price fails to gain price traction, forming head-and-shoulders pattern on the four-hour chart.
  • 50 four-hour simple moving average (SMA) cutting through the topping pattern creating technical pressures for Ripple.
  • Psychologically significant $1.00 playing an active role again in directing XRP price.

XRP price has failed to be a champion during the bounce off the May 19 and May 23 lows, generating only a 50% gain from the low. Over the last four days, the price action has been more reflective of a topping process, putting Ripple at risk of a pullback in the coming days. 

XRP price intentions remain unclear after bounce

XRP price closed on May 23 with a bullish hammer candlestick pattern that was effectively triggered on May 24 when Ripple traded above $0.816. The candlestick formed in the ‘legal uncertainty price range’ associated with the November 2020 high and the December 2020 low, a time in which the SEC case was announced.

Over the last four trading days, XRP price has wrestled with the psychologically important $1.00 and the 50 four-hour SMA. The price action during this time has been passive with waning volume and no demonstrable interest in upside progress, suggesting a mild pullback may be necessary to effectively reset Ripple for a meaningful charge beyond the tactically important price points.

XRP price is projected to define a head-and-shoulders topping pattern on the four-hour chart, generating the needed pullback to reset Ripple for the second leg of the bounce. The measured move target is $0.807 based on the current position of the neckline. It would push XRP price near the upper level of the ‘legal uncertainty price range.’ 

A possibility exists that XRP price will test the upper level of the price range at $0.780 and may even decline to the February 21 high at $0.757, representing a 20% drop from the neckline. Any further weakness raises the odds that Ripple will break under the May 23 low at $0.652, leaving the cross-border remittances token vulnerable to a test of the 78.6% Fibonacci retracement of the rally from the December 29 low at $0.555.

XRP/USD 4-hour chart

XRP/USD 4-hour chart

To reverse the short-term bearish narrative, XRP price needs to rally beyond the head of the head-and-shoulders pattern at $1.07. It would free Ripple to test the 38.2% retracement of the April-May decline at $1.15. Further upside will be complicated by the May 10-13 lows around $1.20-$1.23.

To be sure, as long as the SEC case continues, XRP price will be predominately influenced by the sentiment of the broader cryptocurrency market and the price action of the bellwether cryptocurrencies, Bitcoin and Ethereum.


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

Polygon joins forces with WSPN to expand stablecoin adoption

Polygon joins forces with WSPN to expand stablecoin adoption

WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.

More Cryptocurrencies News
Coinbase envisages listing of more meme coins amid regulatory optimism

Coinbase envisages listing of more meme coins amid regulatory optimism

Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.

More Crypto News
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week. 

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