Ripple (XRPUSD) Technical Analysis: Potential Reversal Signal

Ripple could be due for a decline as it forms a head and shoulders reversal pattern on the 4-hour chart. Price has yet to break below the neckline around .3600 to confirm that a slide is due.

The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse. Price is also above both moving averages to reflect the presence of bullish pressure.

RSI is turning lower to signal that sellers are returning, even without seeing overbought conditions. Stochastic is also dipping into the overbought territory and may also be ready to head south so price might follow suit.

News of large amounts of XRP being transferred have traders on their toes for fear of something big brewing. According to the Twitter account Whale Alert, there was a little more than 2,900,000,000 XRP worth roughly $1.1 billion that changed hands in a matter of minutes. These were divided into seven different transactions, with the largest one moving 1,108,302,304 XRP or nearly $400 million.

Besides, ethereum has regained its top two spot in cryptocurrency rankings, something that XRP snatched late last year. This is contributing to some downside pressure on XRP as well while traders move some of their holdings to the larger digital asset.

Still, the optimism in play over the start of the year as traders anticipate developments in the months ahead is able to keep XRP afloat. News of actual progress in xCurrent or xRapid could buoy it even higher as this has been the case for the most part of 2018. So far, it has been rumored that 12 companies are adopting Ripple’s XRP-based payment platform soon.


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