Ripple price, just like its currency counterparts, is benefitting from the general dollar weakness that we’re seeing at the start of this week’s trading. As of this writing, XRPUSD is trading 1.44% higher from where it opened for the week at $0.2184. Technicals also suggest that we could see more upside potential in the cryptocurrency soon.
On the 1-hour time frame, it can be seen that ripple price has pulled back some of its gains back to the 50% Fib level (when drawing the Fibonacci retracement tool from the low of July 24 to the high of July 26). In doing so, ripple price looks to have formed a double bottom chart pattern. When you enroll in our free forex trading course, you will learn that this is characterized by the market getting rejected at a support level twice. In the case of XRPUSD, that support level was $0.2150 which falls nicely around the 50% Fib level. If there are enough buyers in the market, we could soon see ripple price trade higher to $0.2250 where it topped on Friday’s trading. If resistance at that level does not hold, the next ceiling could be at $0.2361 where XRPUSD peaked on April 30.
On the other hand, if buyers are not able to sustain their momentum, we could see the cryptocurrency give up more of its gains. XRPUSD could fall to $0.2144 where it may test support at the rising trendline (from connecting the lows of July 20, July 22, July 24, and July 25). If support does not hold, the next floor could be at $0.2100 where ripple price could test its July 23 highs.