XRP, the native cryptocurrency of global payment company Ripple, shows a slight surge of +3% during Tuesday’s trading session. The buying pressure followed a broader market uptick despite the escaping trade policy tension between the United States, China, and Canada. However, the market is yet to confirm bottom formation and XRP price faces the risk of a $1 breakdown amid a key reversal pattern.
Key Highlights:
- XRP price faces a risk of a $2 breakdown amid broader market corrections and inverted head and shoulder patterns.
- The flattish trend in the daily Exponential Moving Average (20, 50, and 100) accentuates the short-term sideways action.
- The $3 and $3.4 stands as immediate resistance against XRP buyers.
XRP Price Struggles to Maintain Support Amid Reversal Pattern
Over the past three months, the XRP price has hovered above $2 support while struggling to surpass the $3 barrier. This consolidation in the daily chart shows three peaks: a higher middle peak (head) and two lower peaks (shoulders) on either side, indicating the formation of a head and shoulder pattern.
This chart setup typically forms at major market tops, indicating high overhead supply and the need for a price correction. Currently, the XRP price trades at $2.4 with an intraday gain of 3.09%.
If the pattern holds true, the coin price could plunge 18% down to challenge the neckline of $2. If the daily candle closes below this support, the sellers could drive the price to $1.63, followed by $1.28.
Conversely, if buyers manage to defend $2 support, the current consolidation could prolong and replenish the prevailing bullish momentum.
Technical Indicators:
Relative Strength Index: The declining trend in daily RSI (48%) accentuates the bearish momentum in dominating XRP’s movement.
Exponential Moving Average: The 200-day EMA wavering near the $2 floor increases the support strength of this level. However, the other EMAs (20, 50, and 100) highlight a sideways action in play.
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