XRP is attempting recovery after it ended 2019 in the red, having a bearish short and medium-term trading bias. The four-hour time frame shows that there’s a bullish inverted head and shoulders pattern in the making as we are reading further in the XRP news.
The daily time frame shows another bearish wedge forming as well. XRP is attempting a recovery towards the $0.20 level right after the crypto slipped to its weakest trading level since December 18 earlier this week. The cryptocurrency ended December with a loss of 13 percent and finished the year in negative territory by around 45 percent. During 2019, XRP has been unable to hold onto the gains as the traders sell upside rallies. The technical analysis shows that XRP is attempting to stabilize above the $0.28 level in 2020 by trying to encourage the bearish trend and to acknowledge a bullish trend forming.
From the current levels, the XRP pair will have to start a new rally of about 45 percent to reclaim its 200-day moving average and turn technically bullish. The four-hour time frame shows that XRP has to rally above the $0.20 level to turn bullish over the short term. Furthermore, XRP will have to rally by another 20 percent to form a bullish reversal pattern in the low time frames. The size of the pattern suggests that the XRP could start a rally to the $0.28 level if the bulls move the price above the $0.23 level.
The daily time frames show the importance of the $0.17 level as it currently acts as critical technical support. The loss of this area could spark a huge XRP sell-off. The technical indicators show bullish potential in the short-term and the Relative Strenght Index forms an inverted head and shoulders pattern. The key technical resistance is located at the $0.20 and $0.23 level. In the medium-term, the technical resistance is located at $0.28 and $0.38 levels. The four-hour time frame shows that the XRP pair has strong technical support around the $0.18 level. Losing this support level could spark a huge decline towards the $0.15 level.
XRP has to hold above the $0.20 level in order to secure the buying interest towards the $0.23 level. Overall, the rally towards the $0.28 level appears to be possible if the buyers decide to rally the cryptocurrency towards the $0.28 level.
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