XRP Price Threatened By Bearish Pattern, Threatening Longer Correction

For the past four months, the XRP/USDT pair has been fluctuating in a sideways rally.

However, this consolidation represents an inverted pennant pattern in light of the April–May carnage. According to the technical setup, this pattern provides XRP sellers with a brief respite or rest period before the price correction is resumed.

The support level of $0.288 from the June low could be lost by the XRP price under the impact of a bearish pattern. The bearish argument will be refuted by a bullish breakout from the above trendline. The $912 million intraday trading volume for XRP indicates a 14% decline.

The XRP price recovered from the support trendline on September 16 with a big bullish engulfing candle, recording a 9.1% gain. The overhead trendline has already been reached by the altcoin, preventing positive growth from moving higher.

Today's intraday increase in the coin price of 0.8% provides a follow-up to a bullish turnaround. But if the selling pressure continues, the price of XRP will just slightly budge off the bottom trendline.

As a result, the technical chart shows that the price action has become too constrained to be deemed a trading area. Therefore, the sideways rally will continue for a few more sessions until altcoin gets stuck between the two convergent trendlines.

On the other hand, despite the fact that the inverted flag pattern is a bearish continuation pattern, there is a chance that the coin price may break through the resistance trendline in a bullish direction. By doing this, the bearish pattern will be neutralised, and it might even support further comeback rallies.

Technical indicator

Bollinger band: A retest of the upper band by the coin price indicates an impending bear cycle within the triangle area.

RSI: The daily-RSI slope exhibits a substantial positive divergence with respect to the swing lows inside the price pattern, indicating an increase in underlying bullishness. This divergence supports the recovery theory and indicates that the price will eventually cross the trendline shown above.

The interested traders must therefore wait until neither trendline is broken by the price.

levels of resistance: $0.365 and $0.388

levels of support: $0.32 and $0.30