Ripple price gets ready for lift-off as the H&S pattern breakout extends towards $0.20.
XRP/USD is back in the hands of the bulls as observed with the RSI and the MACD.
Ripple is finally looking positive after a gruesome couple of days. On Monday XRP dived back to $0.1850. Recovery from the dip failed to break above the selling pressure at $0.1950 for the second time in less than seven days. XRP/USD began to seek support above $0.19 (frequent support in the first and second quarters of 2020).
Consequently, the formation of an inverse head and shoulder (H&S) pattern has renewed the bullish momentum, sending Ripple above $0.1950. At the time of writing, XRP is trading at $0.1955 while seeking higher support, preferably above $0.1950. On the other hand, buyers have their focus glued on $0.20; a move that could eventually place XRP in the trajectory towards $0.22.
XRP/USD 4-hour chart
Meanwhile, the price is trading above the 50 Simple Moving Average (SMA); a key indicator of a possible rally. In addition, the Relative Strength Index (RSI) is moving higher towards the oversold, signaling that buying pressure is growing. The Moving Average Convergence Divergence (MACD) also shows that gains are likely to continue in the near term. A bullish divergence from the MACD places Ripple in the hands of the bulls.
It is apparent that the run-up above the 100 SMA and the hurdle at $0.20 would lead to a significant breakout above $0.22. The H&S pattern breakout is the main force behind such a move. On the downside, support is anticipated at $0.1900 and 40.1850 respectively.
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 firstname.lastname@example.org