- XRP is bearish in the short-term after a failed upside break from a falling wedge pattern
- Medium-term outlook remains bearish in line with the prevailing downtrend
- XRP / USD pair is slowly edging towards the key 0.2500 level
XRP / USD Short-term price analysis
In the short-term, XRP is bearish after a failed bullish breakout from a falling wedge pattern. Pressure is currently building to the downside with the XRP / USD pair gradually easing lower.
Technical indicators are currently neutral; traders still appear to be very cautious towards XRP as the popular cryptocurrency approaches its 2018 trading low.
It is certainly worth noting that if sellers fail to break the January 29th trading low, a third important higher low will have been established, which may provide encouragement to short-term bulls.
A smaller falling wedge pattern appears to be forming as price consolidates outside the larger falling wedge pattern.
The MACD indicator is currently neutral on the four-hour time frame, which is largely consistent with the tight range bound trading action currently seen in the XRP / USD pair.
The Relative Strength Index appears to be correcting towards the neutral line.
XRP / USD Medium-term price analysis
Ripple is bearish in the medium-term and is showing signs that another downside breakout may soon occur as price drifts towards the lower end of the XRP / USD pair’s six-month trading range.
A break below the $0.2500 level would likely accelerate downside pressures towards the $0.1700 to the $0.1800 region. This technical area was formerly a key consolidation zone during late 2017, right before Ripple launched its bullish breakout.
The downside projection of the failed inverted head and shoulders pattern on the daily time frame has largely played out. As previously stated, the main theme to watch in the medium-term is Ripple’s ability to start creating new lower lows or higher highs away from its six-month trading range.
The Momentum indicator on the daily time is currently flat and provides no clear trading signal.
The Stochastic Indicator on the mentioned time frame appears to be overstretched with relatively little scope for further downside, which is a potential bullish development over the medium-term.
XRP remains bearish in the short and medium-term, although some bullish signs are starting to emerge. If an upside recovery takes shape in the short-term, a third higher low will have formed on the daily charts.
Traders should also watch for a break from XRP / USD pair’s six-week trading range; if the break fails to occur, we are likely to see more relatively limited range bound trading.
Decentral Media, Inc., the publisher of Crypto Briefing, is not an investment advisor and does not offer or provide investment advice or other financial advice. Nothing on this website constitutes, or should be relied on as, investment advice or financial advice of any kind. Specifically, none of the information on this website constitutes, or should be relied on as, a suggestion, offer, or other solicitation to engage in, or refrain from engaging in, any purchase, sale, or any other any investment-related activity with respect to any transaction. You should never make an investment decision on an investment based solely on the information on our website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an investment.