The brief selloff in the XRPUSD asset which followed the slight fall in Bitcoin prices seems to have been brushed off by traders, as Ripple price has recovered along with those of its correlated assets. Bitcoin price was able to recover from Tuesday’s slump that had taken it to as low as $6500 and is once more trading above $7000 again.
The latest price moves confirm the correlated status of Ripple price action to that of BTCUSD, as Ripple price was also able to find support shortly after leaving the rising wedge pattern.
Ripple Labs continues to expand its partnership network across the world, and this could provide the basis for long-term price considerations. The latest development among Ripple partners is that of a firm known as SBI Holdings, which is deploying the R3 blockchain to monitor transactions on its FX margin trading order book. However, Ripple price could continue to be dominated in the short-term by its continued correlation with Bitcoin prices.
Ripple price action as captured on the XRPUSD pair shows that the pair was able to breakdown the rising wedge pattern identified on the daily chart. However, it did not have a chance to actualize the price projection move as it quickly found support at the 0.17801 price level. Despite a brief pullback in today’s trading session, Ripple price action could find itself targeting the 0.2000 price level, where the previously broken wedge lower border could intersect the horizontal resistance. Ripple price will have to surmount this price area if further advance towards the resistance zone bounded by 0.22329 and 0.23299 above is to be actualized. A price push towards 0.24722 will only be possible if Ripple price breaks above this resistance zone.
On the flip side, if the latest recovery is rejected at 0.2000 and the lower wedge border, this move could then be seen as a mere pullback following the breakdown of the wedge. This scenario gives those bearish on Ripple price a reason to force prices towards support targets at 0.17801 initially, with 0.16054 lining up as a potential target should the former fail to live up to its billing.
Attention should continue to focus on Bitcoin prices as the leading indicator for Ripple price action.