Ripple analysis: bullish structure valid above $0.1750
11:20, 10 March 2020
Ripple has turned lower alongside the broader cryptocurrency market, with the XRP/USD pair once again testing the psychological $0.2000 level.
Ripple analysis shows that that cryptocurrency still has a high probability of recovering higher while price trades above the $0.1750 level.
Ripple medium-term price trend
Ripple came under intense technical selling pressure over the weekend, as a bearish breakdown in Bitcoin dragged almost the entire cryptocurrency market lower.
Many of the top altcoins also suffered double-digit declines, while XRP/USD was among the worst affected inside the top-10 by market capitalisation, following the breach of the $0.2300 support level.
Ripple price analysis shows that the cryptocurrency has a bearish medium-term trading bias while price trades below the $0.2500 level.
Although the trend is currently bearish, the daily time frame still shows a valid bullish pattern with substantial upside potential.
As long as the $0.1750 level is defended the XRP/USD pair could stage a strong bounce from current levels. The fortunes of Bitcoin may also be closely linked to a potential recovery in Ripple.
Overall, the daily time frame still shows that a sudden bounce is possible, and that the XRP/USD pair may be a bargain at current levels.
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Ripple short-term price trend
Ripple technical analysis over the short term shows the cryptocurrency has a short-term bearish bias while the price trades below the $0.2600 level.
The lower time frames show that a bullish inverted head-and-shoulders pattern has been invalidated during the recent sharp sell-off.
The breakout below the $0.2250 level invalidated the pattern and prompted a $0.0200 drop. Furthermore, a bearish trendline breakout has occurred.
The trendline breakout is a bearish development, as the rising trendline is extremely technically important for the overall bullish case for XRP/USD.
The trendline is now acting as former support turned resistance, and around the $0.2220 level. Traders should expect short-term selling pressure to remain while price trades below the trendline.
Ripple technical summary
Ripple technical analysis highlights that XRP/USD needs to hold above the $0.1750 to keep the medium-term bullish case alive. The short-term technicals are very bearish while the price trades below the $0.2220 level.