XRP/USD: Weekly Support Vulnerable; H4 Bearish Pattern
Updated
Versus the US dollar, the price of ripple (XRP/USD) finished another trading week on the ropes and ran into an area of weekly support worthy of note for the week ahead: between $0.51462 and $0.53650, which has teamed up with a trendline support taken from the low of $0.30000.
Weekly Support Echoing Feeble Vibe
While the weekly zone is defined support and could encourage bulls, there are a few caveats to bear in mind. The test of this area at the beginning of the year (arrow) failed to establish a meaningful higher high, and current price action has yet to deliver much in the way of bullish commitment. Couple this with the Relative Strength Index (RSI) travelling south of its 50.00 centreline (average losses exceeding average gains: negative momentum) and the recent breach of the 46.12 low formed on 9 October 2023, suggesting further downside is possible, bears may remain at the wheel, at least until a test of the price lows around $0.42700 (oval).
H4 AB=CD Bearish Pattern
Understanding the technical situation on the weekly scale leads things to the H4 timeframe. As evident from the chart, price is in the process of forming an ‘alternate’ AB=CD bearish formation at $0.53316, depicted through a 1.272% Fibonacci projection ratio. What’s also noted here is a moderate Fibonacci cluster, backed by 38.2% and 61.8% Fibonacci retracement ratios. Commonly, you will find AB=CD traders arrange profit objectives through the 38.2% and 61.8% Fibonacci retracement ratios derived from legs A-D (in this case, the aforementioned ratios fall in at $0.52076 and $0.51132).
Weekly Support Echoing Feeble Vibe
While the weekly zone is defined support and could encourage bulls, there are a few caveats to bear in mind. The test of this area at the beginning of the year (arrow) failed to establish a meaningful higher high, and current price action has yet to deliver much in the way of bullish commitment. Couple this with the Relative Strength Index (RSI) travelling south of its 50.00 centreline (average losses exceeding average gains: negative momentum) and the recent breach of the 46.12 low formed on 9 October 2023, suggesting further downside is possible, bears may remain at the wheel, at least until a test of the price lows around $0.42700 (oval).
H4 AB=CD Bearish Pattern
Understanding the technical situation on the weekly scale leads things to the H4 timeframe. As evident from the chart, price is in the process of forming an ‘alternate’ AB=CD bearish formation at $0.53316, depicted through a 1.272% Fibonacci projection ratio. What’s also noted here is a moderate Fibonacci cluster, backed by 38.2% and 61.8% Fibonacci retracement ratios. Commonly, you will find AB=CD traders arrange profit objectives through the 38.2% and 61.8% Fibonacci retracement ratios derived from legs A-D (in this case, the aforementioned ratios fall in at $0.52076 and $0.51132).
Note
As you can see, price action did indeed reach its first TP from the AB=CD confluence!Note
With the price of XRP/USD now heavily selling off and price not clipping the 1.618% Fibonacci projection ratio at $0.54104 (which is a common structure to help place stops), traders short this pattern may now look to aim the 61.8% Fib retracement...
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