Ripple’s bearish momentum continues
A descending triangle factors to a drop to $0.4
A head and shoulders sample paints a depressing image for Ripple
There isn’t any break from the bearish momentum within the cryptocurrency market. Until you might be invested in Bitcoin, the affected by being on the lengthy facet of another coin has been great.
Take Ripple (XRP/USD), for instance.
After spiking near $1 in the course of the summer time, it shortly returned all its positive factors. Principally, a traditional pump-and-dump worth motion, sufficient to draw late newcomers to the occasion, solely to see their funding shortly disappear.
Extra problematic is the current worth motion. It offers no indicators of the bearish stress easing anytime quickly.
Simply the alternative, because the market seems to kind a bearish continuation sample – a descending triangle.
Ripple chart by TradingView
Descending triangle factors to a fast transfer to $0.5
As a bearish continuation sample, a descending triangle hints at extra draw back to return. Its measured transfer equals the size of the longest phase of the triangle – on this case, it indicators a drop to $0.4.
The primary characteristic of such a triangle is the truth that bounces from horizontal assist are smaller and smaller till, finally, assist offers means.
On an excellent larger scale, the descending triangle may simply be the proper shoulder of a head and shoulders sample. If that’s the case, the spike in the course of the summer time months near the $1 space can be the top of the sample.
If a head and shoulders sample does materialize, Ripple has rather more room to the draw back than bullish traders would wish to assume now.
