Ripple Price Stalls At Key Resistance as PBoC Injects Liquidity
Ripple price action has stalled at the key resistance area of 0.25308 as attempts to push further to the upside appear to have faltered. This Ripple price move seems to be in tandem with similar price moves in other cryptocurrencies. For instance, Bitcoin price touched the $9600 before pulling back to reprint the $9280 mark as at the time of writing this.
These price moves may be a market response to the Peoples Bank of China (PBoC) injection of $170billion worth of liquidity into the financial system on Sunday. The PBoC took this action to stabilize its markets against coronavirus-induced selloffs as Chinese markets open for the first after the new year. The coronavirus fears have led to selloffs in all Asian markets and across the world in the past week and have also put risky assets linked to China, such as crude oil and copper, on offer. The PBoC’s action may cool interest in cryptocurrency markets, which emerged as an alternative investment vehicle of choice as investors sought safety in major cryptos.
The daily candles of yesterday and today were unable to access the next upside resistance target at 0.26754 after pushing and closing above the 0.25308 price level, converting this resistance into a support level. With today’s candle forming a lower low than yesterday’s daily candle, the pace for a downside challenge of 0.25308 seems to have been set.
A successful breakdown of 0.25308 will likely force Ripple price towards the 0.23428 price level, which interacts with the upper border of the bullish flag. If price re-enters the flag, then the lower edge located at 0.21409 becomes a logical target.
If the 0.25308 price level can hold as support, we may see price re-targeting 0.26754. However, a consolidation between these two price levels cannot be ruled out, if buying and selling interest retains price between this range.