Search ForexCrunch
  • Ripple attempting recovery after Friday’s corrective slide.
  • Downside more compelling amid a bunch of healthy resistances.
  • Rising wedge formation spotted on hourly sticks.

Ripple (XRP/USD) is battling 0.20 levels, having reversed the overnight recovery to near 0.2020 region. So far this Saturday’s trading, the bulls are struggling to extend the bounce from Friday’s low of 0.1949. The price has entered a consolidative mode, with the downside bias appearing more compelling amid a bearish technical set up. The third-most favorite cryptocurrency is up 1% on a daily basis while on track to book a 10% weekly loss. Its market capitalization stands at $8.83 billion.

Short-term technical outlook

A rising wedge formation is spotted on the hourly sticks, with the price now teasing a breakdown. A break below the rising trendline support of 0.1991 would confirm a bearish breakdown, opening floors towards a test of the pattern target at 0.1918. The path of least resistance appears to the downside amid a lack of significant support levels.

While a bunch of healthy resistances is aligned, which will likely keep the upside attempts in check. The immediate upside remains capped by the horizontal 100-Hourly Simple Moving Averages (HMA) at 0.2003. Should the spot manage to close above the latter on an hourly basis, the bulls will target the next hurdle at bearish 50-HMA at 0.2012. Only a break above the key 0.2030 level, the confluence of the 200-HMA and rising trendline resistance, could call for a reversal of the near-term downtrend.

At the moment, the hourly Relative Strength Index (RSI) holds flat at midline, suggesting a range-bound price movement before the bears regain control.

XRP/USD 1-hour chart

 

XRP/USD key levels to consider