Ripple false breakdown with great separation

Ripple is fighting hard to recover after its amazing sell-off. XRP/USD registered a 51.68% drop from 1.3494 higher high registered on November 10, 2021, to 0.6520 Saturday's (December 04, 2021) low.

At the moment of writing, the crypto was trading at 0.8235 and it seems undecided. In the last 24 hours, XRP is up by 3.34%. In the short term, it could move sideways trying to accumulate more bullish energy. Technically, after its massive drop, Ripple could develop a new fresh swing higher. Still, it's premature to talk about a new leg higher as long as the crypto stands below strong upside obstacles.


XRP/USD down channel

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As you can see on the H4 chart, the price of Ripple registered only a false breakdown with great separation below the down channel's downside line and under the Descending Pitchfork's median line.

Now, it's trapped between 0.8642 and 0.7428 levels. It has failed to stay above the 0.8295 pivot point, so a potential decline is favored as long as it stays under this level. A sideways movement followed by a valid breakout through the downtrend line could announce an upside reversal.


XRP/USD outlook

Ripple could drop again after its failure to stabilize above the weekly pivot point or to approach and reach the 0.8642 former high. A temporary decline could help the buyers to catch a new upwards movement.

As long as it stays above the 0.7428 static support, XRP/USD could still give birth to a strong upwards movement. A new higher high, a bullish closure above 0.8642 could signal an upside continuation.




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Ralph Shedler
Analytical expert of InstaForex
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