Ripple analysis: only bearish below $0.28 level
14:40, 18 August 2020
Ripple is trading at a critical juncture over the medium term, as the cryptocurrency attempts to reach the current 2020 high, which was set in March this year.
Ripple analysis shows that the cryptocurrency is at risk of strong downside correction if the price moves under the $0.28 level.
Ripple medium-term price trend
Ripple continues to enjoy strong dip-buying interest on any moves below the $0.30 level, as the third-largest cryptocurrency edges back towards the best levels of the year so far.
Ripple technical analysis shows that medium-term bulls may be preparing to test towards the $0.35 level.
The daily time frame shows that a large inverted head-and-shoulders pattern will form if the price reaches the $0.35 level.
According to the size of the potential bullish reversal pattern, the XRP/USD pair could rally towards the $0.50 level over the medium term.
It is possible that the XRP/USD pair could correct lower once the $0.35 level is reached, as a final right-hand shoulder forms to complete the bullish price pattern.
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Ripple short-term price trend
Ripple technical analysis over the short term shows that the cryptocurrency is only bullish while the price trades above the $0.235 level.
The four-hour time frame shows that the XRP/USD pair is trapped within a symmetrical triangle pattern, between the $0.28 and $0.31 levels.
According to the size of the triangle pattern, the XRP/USD pair could rally towards the $0.33 level if a bullish breakout occurs.
Traders should note that negative MACD price divergence is still present on the lower time frames, and extends down towards the $0.23 area.
If a bearish triangle breakout occurs, the $0.25 level is the first bearish target, although the XRP/USD pair could fall towards the $0.23 area, so the bearish MACD price divergence is reversed.
Ripple technical summary
Ripple technical analysis highlights that a sustained move under the $0.28 level could cause the cryptocurrency to drop towards the $0.23 area.
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