The cryptocurrency market continues to attract investors. Ripple price action during the month of August reflects the USD weakness seen across financial markets.
The USD decline forced investors to look for alternatives. One of the alternatives comes from the digital space, where investors look for protection against inflation.
Like any other commodity, a digital asset protects investments against inflation while offering diversification benefits to the trading account.
By fleeing the USD, investors are willing to take risks in unregulated markets too. Ripple price’s bounce from the lows comes at the same time when the entire crypto market bounced. Let by Bitcoin’s move back above the $10,000 level, Ripple price action shows potential for further upside as it keeps forming higher lows against a horizontal base.
Speaking of Bitcoin, it holds a key role in all the cryptocurrencies advance or decline. The direct correlation between the main digital coins strongly influences the flows into or out of a market. As long as Bitcoin holds above $10,000, the bullish bias for Ripple price continues.
Ripple Price Technical Analysis
Ripple consolidated for the entire month of August so far, and it was rejected twice at the 0.32 area. However, each and every pullback was met with strong buying interest. Moreover, the market forms a series of higher lows, a typical formation in rising trends.
The horizontal base suggests a possible ascending triangle in the makings. If that is the case, place a pending buy stop order at the 0.33 and place a stop loss below the previous higher low that completes the triangle. For the take profit level, use a risk-reward ratio of 1:2.
On the flip side, bears may argue that the market has put a double top at 0.32, and the rejection is just the start of a bearish trend. Before going short, wait for the market to break the series of higher lows. Unless it does that, Ripple price action keeps a bullish bias.
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Ripple Price Forecast
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