Ripple [XRP] Price Analysis: Was This Retracement Necessary? Flag Pattern Breakout Looms

  • XRP initially found support at $0.38 following the correction during from the mid-May surge.
  • The formation of a short-term bullish flag pattern hints a breakout in the near-term.

After reacting to a double-top pattern, XRP/USD corrected lower as expected. The formation of this pattern usually hints a reversal when it occurs in the middle of an up trending market that is losing momentum. XRP initially found support at $0.38 following the correction during from the mid-May surge.

XRP/USD 4-hour chart

XRP price analysis
Chart source: Tradingview

Both the 100 exponential moving average (EMA) and the 200 EMA 4-hour have been supporting the price in the last three weeks. If the price continues to stay above the EMAs, there is a high chance that XRP will reverse the trend higher towards the critical $0.50. The last week of May saw the price correct towards the same level but the formation of the double-top pattern has resulted in a slide that has found support at $0.4000.

Meanwhile, the formation of a short-term bullish flag pattern hints a breakout in the near-term. This will, however, require that the price corrects above $0.4600 resistance (seller congestion zone), in turn, encouraging more buying entries. The increasing buying influence could send the price above $0.50 and pave the way for a further correction towards $0.60.

Looking at the chart, the MCAD continues to sit in the positive. The slight divergence means that the bears are likely to continue gaining traction. A break below the above-mentioned bullish flag pattern could result in further breakdown towards $0.4000.

As far as support is concerned, XRP/USD initial support is observed at $0.4200, the EMA200, $0.4000 and EMA100.

Ripple Key Technical Indicators

Bull Flag pattern: Impending breakout could touch $0.50 critical level.

EMA100 4-hour: $0.3869

EMA 200 4-hour: $0.4122

MACD 4-hour: +0.0052

The post Ripple [XRP] Price Analysis: Was This Retracement Necessary? Flag Pattern Breakout Looms appeared first on Coingape.

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