Ripple analysis: Deeper downside correction possible
Ripple analysis shows that a downside correction towards either the $0.2550 or $0.2300 area may take place if the $0.2650 support level is broken.
Ripple has started to reverse sharply lower, after the third-largest cryptocurrency by market capitalization found strong resistance from just under the $0.3500 level.
Ripple analysis shows that that cryptocurrency is vulnerable to a deeper downside correction if price trades below the $0.2650 level.
Ripple medium-term price trend
Ripple has started to reverse sharply lower, after meeting strong technical resistance from just below the $0.3500 level.
Many of the top altcoins have also started to turn lower this week, placing the emphasis on a deeper technical correction.
Ripple price analysis shows that $0.2550 to $0.2450 technical area is critical technical support for the cryptocurrency over the medium-term.
The $0.2550 level is where the XRP/USD pairs 200-day moving average is currently located, and is also a key breakout area that has not yet been retested from earlier this month.
Additionally, the $0.2450 level is where the XRP/USD pairs 50-day moving average is found.
It is likely that continued weakness below the $0.3000 level will prompt a major upcoming technical test of the $0.2550 to $0.2450 technical area.
Ripple short-term price trend
Ripple technical analysis over the short term shows that that the recent reversal has helped to form a large head and shoulders pattern on the lower time frames.
The neckline of the reversal pattern is located around the $0.2650 level, and holds a downside projection that would take the cryptocurrency towards the worst levels of 2019.
It is also noteworthy that the XRP/USD pair will lose its short-term bullish bias if price breaks below the $0.2600 support level.
Key short-term technical support below the $0.2600 level is currently located around the $0.2450 and $0.2300 levels.
It is worth reiterating that any pullbacks towards the $0.2450 or $0.2300 will likely be seen as a major dip-buying opportunity.
Ripple technical summary
Ripple technical analysis indicates that the cryptocurrency could stage a deeper downside correction. A move below the $0.2650 level should encourage heavy short-term technical selling.