With this flag pattern in play, XRP/USD support areas are in grave danger

Fibo Quantum

  • Ripple rises from the ‘crypto’ to test the resistance at $0.2850.
  • A consolidation phase is in the offing and likely to set the ground for a brief rally towards $0.30.

Ripple price is battling to stay in the green on Friday during the Asian session. The third-largest crypto in the world kicked off the session at $0.2767. A bullish leg touched highs around $0.2786 but XRP has adjusted to the current $0.2778. According to the intraday chart rates table, the prevailing trend is bearish (short-term) amidst shrinking volatility.

Meanwhile, the buyers need to be commended for their resilience in the past 48 hours. From the recent low at $0.25, XRP has tested the resistance at the 50 Simple Moving Average (SMA) on the two-hour chart currently at $0.2850. The recovery has also formed a bearish flag pattern likely to influence the next movement in terms of direction.

A bearish flag pattern is used to signal a reversal in a slightly bullish market. It comes after a sharp decline and suggests a continuation of the downtrend. In this case, XRP could make a return to $0.25 before staging another recovery. However, depending on other technical indicators, the effect of the bearish flag pattern could be averted entirely.

The Relative Strength Index (RSI) has recovered significantly from the oversold levels. The RSI is holding ground just above the average. The horizontal motion suggests that a consolidation phase could come into the picture before XRP rallies towards $0.30

XRP/USD two-hour chart

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