Ripple faces growing resistance at the trendline further putting to great risk the support at $0.19 and $0.1850.
XRP/USD could settle for consolidation if support above $0.19 is defended at all costs.
Ripple’s drop on Monday refreshed the lows traded last week around $0.1850. This resulted in the formation of a double-bottom pattern. The pattern is very popular in technical analysis and it is used to signal a reversal from a downtrend. As expected, Ripple reversed the trend almost immediately, stepping above $0.19.
The bulls extended the leg upwards but failed to break the hurdle at $0.1950. The trendline resistance also stood in the way of the bullish action. Ripple resumed the downtrend resting the short term support at $0.19. At the time of writing, the fourth-largest cryptocurrency is trading at $0.1916 and holding the position above the 100 SMA in the hourly range.
XRP/USD 1-hour chart
High congestion of bulls at $0.19 is bound to stop declines toward the main support at $0.1850. Technical indicators such as the RSI and the MACD emphasize on sideways trading action. For instance, the MACD is moving sidelong at +0.00083. This means that buyers are relatively in control. The consolidation is confirmed by the Relative Strength Index (RSI).
On the upside, resistance at $0.1950 is them buyers’ nightmare. If broken, a breakout could emanate, sending Ripple above $0.20. Meanwhile, support above $0.19 is currently key to breaking the stubborn descending trendline resistance. Note the longer the price stays under the trendline, the stronger the bears become; a situation that could force Ripple to retest levels towards $0.18.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at email@example.com