Despite making new higher highs this week, XRPUSD is now trading below last week's lows. This is a sign of weakness. Price briefly moved above the key resistance of $1.35 but bulls were not strong enough to support it. Price has turned sharply lower challenging the August lows.
The weekly candlestick so far implies that more downside should be expected. The inability to hold the new highs and the turn around back towards the $1 price level were signs of weakness. The entire upward move from $0.50 is most probably complete and price is now in a corrective pull back. So far price has retraced 50% of the entire upward movement. If price breaks below $0.95, we should expect a move lower towards $0.80-$0.83. Current price action justifies such a decline. However in our longer-term view, our preferred scenario remains the one where we see the formation of a higher low and the continuation of the up trend above $2.
